Speed Pays Rich for New-age Logistics Cos Chasing Growth

What happened

Delhivery and Shadowfax are expanding same-day and next-day delivery services as demand grows from direct-to-consumer brands and ecommerce sellers. Shadowfax says same-day delivery earns 15–20% higher realisations on its existing network, while Delhivery says its faster-delivery and fulfilment business represents a ₹300–500 crore business.

Confirmed

Global impact / market context

If merchants pay more for faster delivery, logistics companies could earn more revenue per shipment, and using an existing network may limit added network costs. However, the article gives no cost or profit figures for these services, so higher prices do not confirm better overall returns.

Analyst inference

The article describes growing demand from direct-to-consumer brands and ecommerce sellers, alongside stronger competition for customers. Shadowfax’s express-parcel revenue rose 55% year on year in the second quarter, showing growth in its broader express business, though the supplied text does not give Delhivery’s comparable growth figure.

Confirmed

What to watch

1. Watch whether merchants increasingly choose same-day and next-day delivery; sustained demand would support the companies’ expectation that sellers will pay more for faster service. Analyst inference
2. Look for updates on delivery costs alongside revenue from these services, because higher revenue per shipment would not necessarily mean higher profit if faster delivery costs more. Analyst inference
3. The supplied text cuts off before Delhivery’s second-quarter express-shipment growth figure; a reported figure would allow comparison with Shadowfax’s express-parcel revenue growth. Analyst inference

Evidence

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