Sahil Barua, the Chief Executive And Managing Director of logistics firm Delhivery, claimed that there has been no fundamental change in the long-term growth of e-commerce in India.
Barua’s comments came after Delhivery gave a muted outlook last month, saying it expected growth to moderate for the rest of the year.
Barua said in the company’s quarterly call with analysts on Monday. “When you look at the medium and long-term underlying market for e-commerce in India, the underlying growth in e-commerce is undeniable, I think the reason why growth looks probably moderate this year is that a lot of growth was pushed forward during the Covid-19 period and that kind of growth would have otherwise naturally unfolded later.”
Another factor that affects this year’s e-commerce growth rate is the March departure of Singapore-based Shopee from India, he continued.
Delhivery Shares Drops Around 30%
Shares plunged more than 30% in two days last month as a result of its shipping volume projection, almost dropping below its issue price of Rs 487. Since then, it has made a comeback in trading sessions.
Delhivery‘s primary express package business, its e-commerce delivery operation, is seeing rising competition.
On November 8, Amazon allowed outside clients to use its own logistics division, Amazon Transportation Services. This comes after rival Flipkart, likewise externalized its logistics unit Ekart to accept orders from other e-commerce businesses and brands.
Regarding the competition from Flipkart and Amazon, Barua argued that Delhivery enjoyed a competitive edge because of its far cheaper cost structure than its competitors.
In India, Delhivery offers supply and logistical services. In 2011, Sahil Barua, Bhavesh Manglani, Mohit Tandon, Suraj Saharan and Kapil Bharati founded this Gurgaon-based business. More than 85 fulfillment centers, 24 automated sorting facilities, 70 hubs, 7,500+ partner facilities, and 3,000+ direct delivery facilities were all part of the company’s network as of 2021. The company’s revenue is derived two-thirds from supplying e-commerce companies with delivery and logistical services.
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