STARTUP-STORIES
Delhivery Launches Shared Dark Stores for Rapid Local Deliveries
SUMMARY
Delhivery is launching a network of shared dark stores to enable direct-to-consumer (D2C) brands to fulfill local deliveries within a two to four-hour timeline, addressing the rising demand for quick deliveries.
The initiative focuses on "rapid commerce" tailored for D2C brands rather than ultra-fast grocery deliveries, with shared micro warehouses designed to enhance efficiency and reduce operational costs for these brands.
New-age logistics giant Delhivery is set to revolutionize the direct-to-consumer (D2C) market with the launch of a network of shared dark stores, or micro warehouses. These facilities are designed to fulfill local deliveries within a rapid two to four-hour timeline, a strategic move announced by Delhivery’s co-founder and CEO, Sahil Barua, during a post-earnings analysts call on Friday.
The Need for Speed: Quick Commerce on the Rise
As consumer demand for faster deliveries continues to surge, Delhivery’s initiative addresses a critical market need. The shared dark stores will be available on a multi-tenant basis, allowing D2C brands to leverage these micro warehouses for efficient local distribution. Despite the potential, Barua noted that this new service is not expected to significantly drive revenue in the short to medium term.
Strategic Focus: Rapid Commerce vs. Quick Commerce
Delhivery's focus is on "rapid commerce" rather than the ultra-fast 10 to 15-minute grocery deliveries. Barua emphasized that the company's new service is tailored for D2C brands and certain product lines from larger e-commerce platforms, rather than quick commerce providers like Blinkit, Instamart, or Zepto. This strategic distinction aims to address the specific needs of D2C brands, which require efficient and cost-effective local delivery solutions.
Operational Insights: Multi-Tenant Warehouses
Barua explained that Delhivery will provide both the dark stores and delivery services from these facilities, helping e-commerce companies to make their delivery costs more variable. The shared nature of these warehouses will enable companies to manage inventory more efficiently and reduce the complexities of operating standalone dark stores.
Market Dynamics: Impact on E-commerce
The introduction of rapid commerce is not expected to drastically alter the broader e-commerce landscape. Barua highlighted that certain categories, like apparel and heavy items, do not align well with the quick commerce model. Therefore, the volume of e-commerce transactions at risk due to the rise of rapid commerce is likely to be minimal.
Industry Context: Growing Interest in Quick Deliveries
Delhivery’s move comes amid growing interest from third-party logistics companies in the quick commerce space. In June, ET reported on this trend, noting that companies like Delhivery were exploring opportunities in the sector. Meanwhile, other players like Shiprocket are also expanding their quick delivery services by partnering with hyperlocal delivery platforms.