Leading logistics firms Delhivery and Xpressbees expand into quick-commerce to meet rising demand.
Third-party logistics companies Delhivery and Xpressbees are transitioning from their traditional e-commerce focus to the quick-commerce sector due to increased demand from platforms like Swiggy Instamart, Blinkit, and Zepto, as reported by the Economic Times.
Delhivery, based in Gurgaon and the largest third-party logistics firm in India, has started managing larger warehouses for Swiggy Instamart, which supply smaller dark stores and fulfillment centres in urban regions. Similarly, Pune-based Xpressbees is in negotiations with several entities to enter this burgeoning market.
As quick commerce expands, logistics players are seizing the opportunity, and platforms require robust logistics infrastructure and expertise,” the report quoted a source. Companies like Zepto are also upgrading their main warehouses to broaden their product ranges.
Delhivery’s collaboration with Swiggy Instamart aims to enhance their partnership, enabling Instamart to manage a diverse array of stock-keeping units (SKUs) as major players diversify their offerings. Xpressbees, which already partners with multiple e-commerce and direct-to-consumer brands, is exploring potential partnerships within the quick-commerce sector and will take on significant warehouse management roles.
On May 17, Delhivery Co-founder and CEO, Sahil Barua, stated that their supply chain services are already supporting one of the largest quick-commerce players. “Our role will remain similar, managing deep reserve warehouses that supply dark stores,” he mentioned during a post-earnings analysts call.
Barua also clarified that Delhivery has no plans to enter the ultra-fast 10-minute or 15-minute grocery delivery market. Instead, they will focus on providing two-hour or four-hour delivery services for specific products, an area where major e-commerce companies are also expanding. He noted that leading e-commerce players like Flipkart and Amazon have announced plans to enhance operations for categories like mobile phones and appliances, where Delhivery will play a crucial role in the supply chain.
