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HomeNewsBusinessCompaniesDelhivery, Xpressbees dive into quick-commerce amid soaring demand: Report

Delhivery, Xpressbees dive into quick-commerce amid soaring demand: Report

Xpressbees, which already works with several e-commerce and direct-to-consumer brands, is exploring opportunities in this growing sector.

June 15, 2024 / 09:12 IST
The report also highlights that companies like Zepto are redesigning their mother warehouses to accommodate a broader range of products.

Third-party logistics (3PL) firms Delhivery and Xpressbees are expanding their services beyond traditional e-commerce orders to meet the growing demand in the quick-commerce sector. Platforms such as Swiggy Instamart, Blinkit, and Zepto are driving this shift, according to a report by The Economic Times (ET) citing sources.

Gurgaon-based Delhivery, India’s largest 3PL firm, has started managing larger warehouses for Swiggy Instamart. ET reported that these warehouses supply smaller dark stores or fulfillment centers within city limits. Similarly, Pune-based Xpressbees is in discussions with multiple players to enter the quick-commerce segment, sources familiar with the matter told ET.

“As quick commerce continues to grow, logistics players are recognizing the opportunity while platforms require robust logistics infrastructure and expertise,” a source told ET.

The report also highlights that companies like Zepto are redesigning their mother warehouses to accommodate a broader range of products. Delhivery’s partnership with Swiggy Instamart aims to expand further, facilitating the movement of various stock-keeping units (SKUs) as top players diversify their offerings.

Xpressbees, which already works with several e-commerce and direct-to-consumer brands, is exploring opportunities in this growing sector. “Xpressbees will also handle some of the heavy lifting in warehouse management,” another informed source told ET.

Despite these developments, a senior executive at a 3PL firm noted that quick-commerce players prefer to operate their dark stores independently due to the specialized technologies and customizations involved. “These players are experts in managing dark stores and want to maintain control,” the executive told ET.

While Moneycontrol could not independently verify the story, emails sent to Delhivery and Swiggy Instamart by ET went unanswered. A spokesperson for Xpressbees declined to comment on their plans, as per ET. 

“This strategic move could help these platforms maintain processes and compliance, which is crucial as they expand in the e-commerce space,” a senior e-commerce industry executive noted.

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Moneycontrol News
first published: Jun 15, 2024 09:12 am

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