Why is e-commerce an urban phenomenon?
I recently visited a northern state in India and to my surprise, many e-commerce companies did not deliver service there. It was a shock to me as I come from a place where technology is the buzzword and not using it is like not being literate. This clearly highlights the limitations of and boundaries of technology in India. The geographical region plays a very important role in this. It's not only difficult but quite expensive to deliver in places governed by mountains or where the consumers are themselves reluctant to adapt.
We may call such regions in our urban language as underdeveloped but the reality is the cost of adapting technology to the business model in such areas. We may talk about the Walmart acquisition but it's an urban phenomenon. It doesn't really matter to people in those places where online shopping is non-existent. The geographical diversity of India makes it difficult for the e-commerce companies to do business everywhere. But it can also be seen as a huge opportunity for startups to come up with innovative business models using technology in such areas. It will also provide employment opportunities in such areas where tourism is the only source of earning money.