#3: What makes Delhivery competitive?

Breaking down its asset light business model

Delhivery operates in the 3rd party logistics (3PL) space, that serves as as a subset of the overall e-commerce delivery market. Delhivery is the largest 3PL player in the space, having ~33% market share.

There are many factors that contribute to Delivery's competitive advantage in a highly fragmented market, one of which is its asset-light business model.

What is Delhivery's business model?

✅  It leases its warehouses, fulfillment centers, and its other fixed infra, compared to other 3PL players (that have invested heavily in physical infrastructure and are much smaller in size)

✅  Its delivery network spans over 9,000+ trucks that are operated by small fleet owners, vs. only 400+ trucks owned by Delhivery.

For one, because Delhivery's spending is minimal on fixed infra, Delhivery can outspend its competition on its technology stack (which is incredible!), and constantly innovative its processes and technology.

Also, this model (similar to a marketplace for fleet owners, don't you think? ) benefits small fleet owners in Delhivery's network through:
✅  Better visibility on demand and growth prospects (without any spend on marketing)
✅  Improved truck utilization - lesser idle time

Compare this to the heavy capex that typical 3PL players invest in infrastructure and delivery, and you'll see why Delhivery has been able to scale rapidly so far!