Delhivery to provide dark stores for ecommerce companies amid soaring demand

Delhivery will provide dark stores and in-city delivery services to ecommerce companies, as the third-party logistics unicorn looks to capitalise on the surging demand for faster delivery services in India.

Delhivery's dark store network will be for 2-4 hour deliveries and not for 15-20 minute ones and, thus, it does not expect Zepto, Blinkit, and Swiggy's Instamart to become its customers, CEO Sahil Barua said in the post-earnings call with analysts on Friday.

"Multiple companies will be able to deliver from the same dark stores. Standalone dark stores will be pretty expensive. The idea is to allow companies to variablise their costs...It will be a significant driver of revenue for us," Barua reportedly told analysts.

Delhivery's move to roll out dark stores and in-city delivery services for ecommerce comes when demand for faster deliveries is soaring in the country, compelling even traditional ecommerce and logistics companies to join the frenzy.

While Flipkart is gearing up to launch its quick commerce foray, SoftBank-backed logistics firm Xpressbees is also looking to enter the segment via partnerships with ecommerce players, a media report suggested.

Delhivery and Xpressbees, otherwise, are typically known for intercity services, enabling ecommerce companies with last-mile deliveries.

"We already have mother warehouses for quick commerce dark stores. We already do fulfilment from warehouses to dark stores. (But) this will be a service that will also connect the last mile," Barua reportedly told analysts. He added that the dark stores will be a fit for mobile phones and adjacent products.

The company reported a profit after tax of Rs 54 crore in Q1 FY25, compared to a loss of Rs 89 crore in Q1 FY24. It recorded a 12.6% growth in revenue from services at Rs 2,172 crore in Q1 FY25, compared to Rs 1,930 crore in Q1 FY24.

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Delhivery swings to a profit of Rs 54 Cr in Q1 FY25

The logistics company also reported an increase in its EBITDA to Rs 97 crore in Q1 FY25 against an EBITDA loss of Rs 13 crore in Q1 FY24. EBITDA, or earnings before interest, taxes, depreciation, and amortisation, is an alternate measure of profitability to net income.

Last month, the company got approval from the Ministry of Corporate Affairs (MCA) to incorporate its drone subsidiary, which will foray into the freight air transportation services sector.

(The copy was updated after Delhivery clarified that it will be providing dark stores to ecommerce companies and not quick commerce.)