New Delhi, June 20 -- SoftBank-backed logistics major Delhivery Ltd has forayed into the lucrative intracity segment, a competitive market dominated by players such as Porter and LetsTransport.
The Gurugram-based company has launched its intracity delivery service called Delhivery Direct, currently available in Delhi-NCR and Bengaluru, following a trial run in Ahmedabad. The service caters to both businesses and individuals seeking fast, local deliveries.
Delhivery Direct will use two-wheelers for packages weighing up to 20 kg, and larger vehicles for heavier loads ranging 500-750 kg, with pickups promised within 15 minutes, according to an exchange filing.
The company plans to expand the service to Jaipur, Chandigarh, and Ahmedabad in the coming months.
Delhivery is betting on its existing network-spanning over 18,700 pin codes across India-to gain a strategic edge in the intracity space. However, scaling its fleet and keeping costs low will be critical in this highly price-sensitive market.
While the company did not disclose specific investment details for Delhivery Direct, it plans to use its current infrastructure to streamline operations, the filing said.
The move comes amid increasing demand for same-day deliveries, fuelled by the rise of e-commerce and evolving consumer needs.
The intracity logistics market, already crowded with players like Porter, LetsTransport, and Uber's logistics arm, is now poised for heightened competition.
Delhivery currently offers a range of logistics services, such as express parcel transportation, partial truckload (PTL) freight, truckload (TL) freight, cross-border logistics, supply chain solutions, and technology services.
The foray into rapid delivery comes months after Delhivery appointed Milind Sharma, co-founder of the now-defunct grocery delivery startup PepperTap, to lead its rapid commerce and direct-to-consumer divisions. Sharma, who helped scale Delhivery's operations in its early years, rejoined the company to drive its quick commerce efforts, including two- to four-hour deliveries through a network of dark stores.
Delhivery, which has been listed on the stock exchange since 2022, logged its first profitable year in FY25. It returned to the black in the fourth quarter of the last financial year after reporting a loss in the corresponding quarter of the previous financial year. Revenue from operations rose almost 6% year-on-year to nearly Rs 2,192 crore in Q4 FY25, while EBITDA grew more than 100% to Rs 119 crore. EBITDA margin improved to 5.4%.
Published by HT Digital Content Services with permission from VC Circle.