Why Delhivery’s taking the long road in the quick-commerce era

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Subscribe to enjoy similar stories. Delhivery Ltd is on a rocky journey as the market turf is changing for the leading logistics company in the express parcel and part truckload segments. Also, India’s third-party logistics sector is facing some headwinds amid increasing competition from established players and as online marketplaces like Meesho opt for their own delivery fleets.

Delhivery is doubling down on improving its cost efficiencies and service quality in its core express parcel business, which accounted for 62% of its revenue in 2023-24. It is also exploring solutions like shared dark stores, or warehouses, for its e-commerce clients to improve capacity utilization and optimize its fulfilment or delivery processes. The Delhivery management expects revenue growth from its express parcel business to rebound to 15-20% in FY25, following a 12% growth in FY24, as it renegotiates key contracts.

The rapid rise of the quick-commerce sector further complicates India’s logistics landscape. While some third-party logistics providers are scrambling to enter this high-pressure space, Delhivery is adopting a strategic course. Instead of competing, it is positioning itself to support quick-commerce companies by offering warehousing, distribution, and last-mile logistics solutions.

This paves the way for Delhivery to leverage its strengths in established segments and achieve long-term growth without compromising on profitability. A bright spot for Delhivery is its part truckload business, which contributed 19% of its FY24 revenue. The business has rebounded nicely, with volumes up 67% in the first quarter of FY25 from two years earlier as Delhivery makes significant strides in business-to-business express logistics, capturing