Delhivery's New Initiative: Shared Dark Stores for Quick D2C Deliveries
Image: Delhivery
Image courtesy: LinkedIn
Delhivery, a leading logistics company, is set to transform local deliveries with the launch of shared dark stores, or micro warehouses.
This innovative service aims to help direct-to-consumer (D2C) brands fulfill local orders within two to four hours.
In this blog, we'll explore Delhivery's strategy, the benefits of these dark stores, and how they plan to reshape the quick commerce landscape.
Introduction
Delhivery, a new-age logistics player, is taking a significant step towards revolutionizing the logistics space by introducing a network of shared dark stores.
These micro warehouses are specifically designed for direct-to-consumer (D2C) brands, enabling them to deliver products locally within a two to four-hour window.
The Demand for Quick Deliveries
With the increasing demand for quick deliveries, Delhivery's new initiative is timely. Customers today expect faster delivery times, and D2C brands need efficient solutions to meet these expectations.
Shared Dark Stores: A Game-Changer
Delhivery’s cofounder and CEO, Sahil Barua, announced during a post-earnings analyst call that these dark stores will be available on a shared basis.
This means multiple companies can use the same warehouse, making it a cost-effective solution. However, Barua mentioned that he does not expect this service to significantly drive revenue in the short or medium term.
Image: Sahil Barua, CEO & Co-Founder of Delhivery
Image courtesy: EY India
“We will provide dark stores and we will also provide delivery services from those dark stores to the extent that ecommerce companies want to use them on a multi-tenant basis to help them make that cost variable in nature,”
Barua said.
Delhivery's Strategic Move
In June, ET reported that third-party logistics companies like Delhivery were planning to enter the quick commerce space.
However, Barua clarified that Delhivery is not aiming for the ultra-fast 10 or 15-minute grocery deliveries. Instead, they are targeting the two to four-hour delivery window for certain products.
Focus on D2C Brands
Barua explained that this new service, termed “rapid commerce,” is specifically designed for D2C brands rather than quick commerce platforms.
Delhivery already provides services to Swiggy Instamart, managing their larger warehouses that supply smaller dark stores.
Image: Sahil Barua, CEO & Co-Founder of Delhivery
Image courtesy: Forbes India
“I don’t anticipate they (Blinkit, Instamart, and Zepto) will be immediate consumers of our dark store infrastructure. Our infrastructure is designed very specifically for direct-to-consumer companies, and some product lines for the larger marketplaces themselves,”
he said.
Challenges and Opportunities
Creating a network of standalone dark stores can be costly for most D2C brands due to the challenges of capacity utilization and over-inventory at the last mile.
Delhivery’s shared model addresses these issues by offering a more efficient and cost-effective solution.
Industry Impact
Barua highlighted that the quick commerce model does not significantly impact broader ecommerce segments