The Delhivery story is perhaps the most inspiring startup success story in the logistics space in India. Starting with a small hyperlocal delivery pilot, it grew into a technology-led logistics behemoth that powers e-commerce in the country. Delhivery has, through the use of data, technology, and scale, disrupted the way packages are moved in India. Today, it is the largest logistics technology company in India and is defining the future of supply chains.
From Hyperlocal Startup to National Logistics Network
Delhivery was started in 2011 with a very simple hyperlocal delivery model for food and small parcels in Gurgaon. But the founders soon realized the huge opportunity in the fragmented logistics market in India, particularly with the growth of e-commerce. The company decided to pivot very early and started building a logistics network that was specifically designed for e-commerce companies. Rather than expanding from city to city in a slow and incremental manner, Delhivery decided to take a very aggressive approach to building its logistics network. The company started partnering with delivery agents and building its own infrastructure. Today, Delhivery has expanded its reach to thousands of pin codes, including Tier-2 and Tier-3 cities, and has become a preferred logistics partner for many e-commerce companies.
Technology-First Approach: The Backbone of Delhivery’s Growth
Delhivery has always been a pioneer with its tech-led philosophy from the start as a tech business rather than a traditional logistics company. From the very beginning Delhivery developed its own proprietary software systems to provide shipping route management, track shipments, forecast demand and measure partner performance. Advanced machine learning and data analytics were used to optimize the routes of deliveries between locations, lower operational costs, and improve on-time delivery performance. Automation has played a critical role at the warehouses and sorting centers and has reduced the level of human interaction in these processes and therefore reduced the risk of errors in the shipping process. The technology stack that Delhivery has built also provides real-time visibility to clients, which provides clients with confidence in their operations as well as creating operational efficiencies. Continued investment in AI-enabled logistics technology solutions kept the company ahead of its competitors by using technology as opposed to relying on manual operating processes for their business. That technology-first mentality enabled Delhivery to handle very large volumes of shipments during peak periods in e-commerce. In a low-cost market like India, the company’s most significant competitive advantage is found through utilising new technologies.
Developing India’s Largest Fulfilment and Last Mile Network
Delhivery has invested significantly to build one of the largest logistics infrastructures in India. With a large number of fulfillment centers, sortation hubs, line-haul operations, and last mile delivery partners, they have created a seamless flow of packages from sellers to customers throughout urban and rural locations. Delhivery has an advantage in fulfilling all types of logistics requirements, including express parcel deliveries, freight, warehousing, and cross-border logistics. Delhivery used a flexible approach for delivery relationships to quickly scale their ability to deliver packages last mile, while avoiding significant fixed asset risks. Ultimately, Delhivery has expanded their reach to include over 18,000 pin codes across India, creating one of the most connected logistics networks in the country. This scale and reach creates high barriers for competitors to enter this market and establishes Delhivery as the backbone of the Indian e-commerce ecosystem.
Competition and Acquisitions in the Road to the Top Logistics Company in India
The logistics industry in India is a very competitive scene with a lot of competition between the players like Blue Dart, Ecom Express and Xpressbees. Delhivery separated themselves from all of the other players in the market by not only providing last-mile delivery but instead offering full end-to-end logistics solutions. Delhivery also made a number of strategic acquisitions most notably Spoton Logistics, which assisted in enhancing their freight and supply chain capabilities. By acquiring companies like Spoton, Delhivery has been able to expand their revenue streams beyond just e-commerce parcel deliveries. Additionally, their IPO was a major milestone that signified their transition from a start-up company to a public company, regardless of the current volatility of the market. Although ways to make profits have been and still continue to be long-term problems for Delhivery, they continue to focus on operational efficiencies and growth through scale. Delhivery’s ability to adapt, consolidate, and invest for the long-term has made them the largest logistics tech company in India.
Conclusion
The success story of Delhivery, a small startup that grew into the largest logistics technology company in India, is a testament to the importance of timing, technology, and execution. By recognizing the gaps in the logistics industry in India early on, Delhivery was able to create scalable and technology-enabled solutions that fueled the rapid growth of the e-commerce industry. Although issues such as profitability and high competition still exist, Delhivery’s long-term strategy and innovation enable it to remain on the right track for the future. As the digital economy in India continues to grow, Delhivery is poised to play an important role in determining the future of logistics and supply chain evolution.
