Still in Pieces: Delhivery Says India’s Logistics Puzzle Needs a Smarter Fit

Image Source: Indian Retailer

Despite rapid digitization and growing investor interest, India’s logistics sector remains deeply fragmented, according to Mohammed Ali, Head of Marketing and SME Business at Delhivery. In a recent interview with BW Businessworld, Ali emphasized that while the market is vibrant and competitive, it is still dominated by a mix of large integrators, regional specialists, and hyperlocal players, creating operational inefficiencies and service disparities.

Key Highlights from the Interview

Fragmentation persists: India’s logistics ecosystem lacks standardization, with overlapping services and inconsistent quality across regions.
Delhivery’s SME strategy: The company is betting on its Delhivery One platform—designed for small businesses—with features like low wallet thresholds, no minimum order values, and plug-and-play integrations with Shopify and Amazon.
Tech-driven tools: Delhivery is leveraging AI for return-to-origin (RTO) prediction, WhatsApp-based customer support, and damage claim automation through Delhivery Protect.
Hyperlocal vs centralized: Ali contrasted Delhivery’s centralized warehouse model with hyperlocal logistics, which often burdens SMEs with inventory distribution across multiple city hubs.

New offerings: The company is piloting rapid store delivery (2–4 hour TAT) for D2C brands in lifestyle and beauty sectors.

Industry Context

India’s logistics sector contributes nearly 14% of the country’s GDP, one of the highest globally. While the government’s ONDC initiative and private players are pushing for integration, the sector still faces challenges in cost efficiency, infrastructure, and service quality.

“Our goal is to ensure any business—big or small—has equal access to our pan-India network, technology, and reliable service,” said Ali.

Why It Matters

With logistics being the backbone of India’s booming e-commerce and D2C economy, solving fragmentation is key to lowering costs, improving delivery timelines, and enhancing competitiveness for SMEs.

Sources: BusinessWorld