Logistics firm Delhivery launches shared dark stores for same-day deliveries

Gurugram-based logistics firm Delhivery is launching a network of shared dark stores aimed at enabling e-commerce firms and direct-to-consumer brands to fulfil faster deliveries. 

The initiative was unveiled by CEO Sahil Barua during the company’s first-quarter earnings call.

The company is known for its large intercity shipments, but with this move, it is shifting focus to rapid deliveries, providing a more cost-effective solution for e-commerce companies.

Delivering from the same location 

Delhivery’s shared dark stores will allow multiple companies to deliver from the same location, reducing operational costs compared to stand-alone dark stores.

“The idea is to allow companies to variablise their costs...I don't think it will be a significant driver of revenue for us," Barua said. 

The network is designed for 2-4 hour deliveries, unlike the ultra-fast 15-20 minute deliveries by quick commerce firms like Blinkit and Instamart.

The service will cater to a broader range of products, including mobile phones and adjacent items, that do not fit the typical quick-commerce model.

Operational focus and economic viability

While Delhivery already provides fulfilment from warehouses to dark stores, the new service aims to connect the last mile, enhancing delivery speed. Barua stated that the need for non-grocery items within minutes is relatively narrow and unlikely to disrupt the broader e-commerce sector significantly.

Instead, Delhivery will concentrate on rapid deliveries within 2-4 hours, optimizing routes and consolidating deliveries to improve unit economics.

Barua remarked, “I don’t believe the unit economics for low-value products in sub-one-hour or sub-30-minute deliveries without significant value density are going to work out.”

Delhivery turns profitable 

In the first quarter, Delhivery recorded a profit of Rs 54.3 crore, a substantial turnaround from a loss of Rs 89.4 crore the previous year.

The improvement was driven by a boost in express parcel delivery services, with shipments growing to 183 million from 176 million a year earlier.

The company's revenue from operations rose 12.56% to Rs 2,172.30 crore, compared to Rs 1,929.78 crore in the same period last year.