Indian logistics firm Delhivery fell as much as 3.5% in early trade after Amazon announced it was opening its supply chain services to other businesses, according to The Economic Times. The move increases competition for logistics contracts, as Amazon’s service allows companies to store and ship goods through its freight, warehousing, fulfillment, and parcel network. FedEx and UPS shares each fell more than 9% in US trading following the announcement.
Amazon’s Third-Party Logistics Expansion
Amazon’s decision to open its delivery infrastructure to outside businesses signals a broader shift in the logistics sector. Similar moves have been made by Flipkart’s in-house logistics arm, Ekart, which is also opening to third-party users. The service provides direct-to-consumer (D2C) brands and small businesses access to more than 14,000 pin codes, or postal service areas, without requiring them to build their own delivery networks.
This shift transforms what was previously an internal cost into a pay-as-you-go service model, potentially standardizing last-mile delivery—the final step of getting a package to the customer.
Delhivery’s Financial Position
Delhivery’s market response reflects underlying financial pressures. In Q3 FY26, the company posted a net profit of 396 million rupees (US$4.17 million), but non-operating income carried the result, with other income equaling 120.42% of profit before tax. This means profit before tax was negative without non-operating income.
Capital efficiency also lags peers. Delhivery’s average return on equity was 0.45%, compared to 30.90% at Blue Dart Express, an Indian logistics and package delivery company. This gap leaves Delhivery exposed if Amazon leverages its deeper pockets to push prices lower in the competitive logistics market.
Employee Stock Options and Strategic Moves
Delhivery approved 100,360 employee stock options under ESOP 2012 from May 1 at an exercise price of Re 1 per share. The company previously acquired Ecom Express, an Indian third-party logistics company, in a move aimed at adding scale to compete in the consolidating logistics sector.
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