India

Ecommerce logistics firms in India shift focus to quick delivery services

Synopsis

Several major Indian logistics companies, including Ecom Express, Shadowfax, and Loadshare Global, are entering the rapid delivery market. This move follows Delhivery's announcement to create a network of dark stores for quick same-city deliveries. While these firms may not match the 10-15 minute delivery times of specialised quick commerce players, they aim to offer swift services, particularly benefiting smaller D2C brands. The trend is driven by growing consumer demand for fast deliveries across various product categories. This shift is reshaping India's ecommerce delivery landscape, with traditional logistics providers adapting to compete with quick commerce startups and meet evolving customer expectations for speedy order fulfilment.

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Several ecommerce and hyperlocal logistics companies in India are expanding into the rapid delivery sector, aiming to capitalise on the growing demand for quick order fulfillment. Firms like Ecom Express, Shadowfax, and Loadshare Global, backed by major investors such as Warburg Pincus, Flipkart, and Tiger Global, respectively, are joining this competitive space.

This development follows Delhivery's recent announcement of plans to create a network of dark stores or warehouses. These facilities will enable brands and merchants to offer same-city deliveries within a two to four-hour window. Delhivery, India's largest third-party ecommerce logistics provider, is setting a precedent that others are keen to follow. Industry insiders, speaking anonymously, reveal that these companies have been developing rapid delivery capabilities for some time. With a significant market opportunity presenting itself, they see it as a logical step to enter this space. Over the coming months, more delivery firms are expected to play a role in quick commerce, driven by both brand and consumer demand.

While these logistics providers may not match the 10-15 minute delivery times offered by specialised quick commerce players like Zepto, Blinkit, and Instamart, they are still aiming for impressively swift turnarounds. Some are already achieving one to two-hour deliveries for standard urban ecommerce orders, with goals to reach 30-minute delivery times for certain services. The trend is particularly beneficial for smaller direct-to-consumer (D2C) brands, which often have a high concentration of sales in their home cities. These brands frequently receive orders through social media platforms like Instagram and WhatsApp, creating a strong demand for rapid local deliveries. Products ranging from fashion and apparel to home furnishings and toys are common in this category.

Delhivery, in addition to its own quick commerce plans, has been collaborating with Swiggy Instamart to manage larger deep-reserve warehouses that supply smaller dark stores. This partnership demonstrates the potential for cooperation between established logistics providers and specialised quick commerce platforms.

As the rapid delivery landscape evolves, it's clear that traditional logistics companies are adapting to meet changing consumer expectations and compete with dedicated quick commerce startups. This shift is likely to reshape the ecommerce delivery ecosystem in India, offering consumers more options for swift order fulfilment across a broader range of products and brands.

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