Delhivery Enters the Last-Mile Race: Launches Short-Haul Cargo Service to Challenge Uber and Porter

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Delhivery, one of India’s largest logistics and supply chain firms, has launched a new short-haul parcel transport service aimed at disrupting the intra-city delivery market. The move pits the company directly against established players like Uber, Porter, and Rapido, as it seeks to diversify beyond its core long-haul freight business.

Key Highlights of the Launch

- The service is currently operational in the National Capital Region (NCR) and Bengaluru, with plans to expand to other metro cities in the coming months
- It targets near-distance parcel delivery within city limits, a segment that has surged in popularity due to the rise of quick-commerce platforms
- Delhivery’s entry is seen as a strategic response to growing competition from in-house logistics arms of e-commerce giants like Amazon and Flipkart
- The company aims to offer a tech-enabled, reliable alternative for businesses and individuals seeking fast, affordable intra-city cargo movement

Market Context and Competitive Landscape

- The short-haul logistics space has become increasingly crowded, with Uber, Porter (backed by Kedaara Capital), and Swiggy-backed Rapido dominating the segment
- These platforms cater to both B2B and B2C customers, offering two-wheeler and mini-truck services for same-day deliveries
- Delhivery’s entry could intensify competition, especially as it leverages its existing logistics infrastructure and technology stack

Strategic Rationale and Business Diversification

- The launch comes at a time when third-party logistics providers are under pressure to diversify revenue streams amid margin compression in long-haul freight
- By tapping into the high-frequency, low-ticket intra-city delivery market, Delhivery aims to build a more resilient and scalable logistics portfolio
- The company is expected to integrate this service with its broader warehousing and fulfillment network, offering end-to-end solutions for SMEs and D2C brands

Future Outlook

Delhivery’s foray into short-haul cargo services signals a bold pivot toward hyperlocal logistics, a space that is rapidly evolving with urban consumer behavior. As the company scales this offering across metros, its ability to differentiate on service quality, pricing, and tech integration will determine its success in a fiercely competitive market.

Sources: Economic Times, Yahoo News, Reuters, Medial News.