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This billion dollar startup is the reason why goods are delivered hassle free and quickly to your house.
Delhivery has disrupted logistics in India!
Here’s how they did it
The goal of the company is simple: become the stretched arms of any business trying to sell things on the internet. Your product, your customer, your profit, they deliver.
They provide a suit of services right now and want to ultimately cover everything a business would ever need in terms of logistics. Kinda like a one stop logistics shop. Before they existed logistics was a major hassle for every online business dealing in physical goods.
Though we might refer to it as a tech startup, the team at Delhivery thinks of it more like a tech-enabled logistics brick and mortar company.
They aren’t exactly a consumer tech startup like Zomato, Paytm etc.
They have an asset light model which means that this company owns less assets like trucks, storage spaces. They don’t invest in assets too much and focus totally on strengthening their operations.
This helps increase their profit margins since they don’t have to spend too much, and this also helps in scaling such startups faster.Basis of asset light model is shared economy. Logistics is extremely unorganised right now in India where companies like Delhivery, Bluedart etc. own just 3.5% of the market together.
India still isn’t well connected. There are several areas in the country which have a huge demand but no one is able to serve them, not even unorganized players. The growth could be immense in this sector provided they do it well, and profitably.
You must be wondering what makes Delhivery so special? They have the power of data. Their distribution model is special for sure, but being tech enabled has helped them fulfil orders more optimally and overtime make the process smoother.
Delhivery has many E-Commerce companies under it’s hoodie like Flipkart, Amazon, Myntra etc. Initally E commerce was their major thing because they saw a lot of loopholes in the system which needed to be solved. Now they have a diversified clientele which is around 21000 in number including big companies and many small and medium enterprises too.
Most of their revenue comes from the top clients. They are trying to change that. With their push towards D2C and serving more small businesses, we think they might be onto something. We have to understand that logistics industry is not really that profitable. Logistics service providers have been earning huge revenues, but not everyone is enjoying profits.
So every player in the market needs to fundamentally understand and change the things that have been done in the past.Delhivery could be in profits in the future, but we can’t say anything for sure.
