Gurugram-based logistics firm Delhivery is introducing a network of shared dark stores to help e-commerce firms and direct-to-consumer brands deliver products faster. This initiative was announced by CEO Sahil Barua during the company’s first-quarter earnings call.
Delhivery, known for its large intercity shipments, is now focusing on faster deliveries through its shared dark stores, offering a more cost-effective solution for e-commerce companies. The shared dark stores will allow multiple companies to deliver from the same location, reducing operational costs compared to stand-alone dark stores.
“The idea is to allow companies to variablise their costs…I don’t think it will be a significant driver of revenue for us,” Barua said. The network is designed for 2-4 hour deliveries, unlike the ultra-fast 15-20 minute deliveries offered by quick commerce firms like Blinkit and Instamart.
Delhivery Product Range
Delhivery’s new service will cater to a broader range of products, including mobile phones and adjacent items, which do not fit the typical quick-commerce model. This move aims to enhance delivery speed by connecting the last mile, improving overall efficiency.
Barua stated that the need for non-grocery items within minutes is relatively narrow and unlikely to disrupt the broader e-commerce sector significantly. Instead, Delhivery will concentrate on rapid deliveries within 2-4 hours, optimizing routes and consolidating deliveries to improve unit economics.
Operational Focus
Delhivery already provides fulfillment from warehouses to dark stores, and the new service aims to further enhance this by connecting the last mile. Barua remarked, “I don’t believe the unit economics for low-value products in sub-one-hour or sub-30-minute deliveries without significant value density are going to work out.”
Delhivery Turns Profitable
In the first quarter, Delhivery recorded a profit of Rs 54.3 crore, a substantial turnaround from a loss of Rs 89.4 crore the previous year. The improvement was driven by a boost in express parcel delivery services, with shipments growing to 183 million from 176 million a year earlier. The company’s revenue from operations rose 12.56% to Rs 2,172.30 crore, compared to Rs 1,929.78 crore in the same period last year.
With this new initiative, Delhivery aims to provide faster and more efficient delivery options, helping e-commerce brands meet the growing demand for quick and reliable service.
