India’s express logistics sector has entered a new phase of consolidation and competitive positioning, with Delhivery CEO Sahil Barua publicly questioning both the relevance of rival XpressBees and the long-term viability of Amazon’s decision to open its logistics network to third-party merchants.
Speaking during Delhivery’s Q4 FY26 earnings interaction, Barua made one of the strongest public statements yet on the changing structure of India’s logistics market, suggesting that the sector may no longer have room for multiple scaled express parcel players.
“There are now three listed players in the Express logistics space—Delhivery, Blue Dart and Shadowfax,” Barua said during the call, adding that he did not see any structural advantage for XpressBees in the current market landscape.
The remarks come at a time when India’s logistics industry is witnessing aggressive shifts in market structure, driven by e-commerce expansion, the rise of quick commerce, rising infrastructure investments, and mounting pressure on profitability.
Amazon’s 3PL Expansion Draws Criticism
Barua also took a sharp jibe at Amazon’s recent move to allow external businesses to use its warehousing, transportation, and delivery infrastructure for orders originating outside its marketplace ecosystem.
According to him, the model reflects a previously attempted strategy that failed to create meaningful differentiation for third-party sellers. He described the offering as “an old product in a new wrapper,” while questioning whether merchants would receive fair prioritisation within a captive logistics network dominated by Amazon’s own shipment volumes.
Barua argued that first-party logistics systems are inherently designed to favour their parent company’s shipments, particularly during last-mile operations where delivery personnel may have to prioritise certain packages over others. He also suggested that captive logistics models are structurally more expensive than neutral third-party logistics providers.
The comments revive a long-standing debate within the logistics sector over whether marketplace-owned logistics arms can effectively serve external merchants without operational or strategic conflicts.
Consolidation Pressure Intensifies
Industry observers see Barua’s remarks as reflective of a broader consolidation trend emerging across India’s express logistics ecosystem.
Over the past few years, logistics companies aggressively expanded networks, invested heavily in automation and fulfilment infrastructure, and competed aggressively on pricing to acquire market share. However, the focus across the industry has increasingly shifted toward sustainable profitability and network efficiency.
Barua indicated that the industry is unlikely to return to the earlier “operating burn” environment, while referencing how some players had aggressively consumed capital during expansion cycles.
The consolidation narrative has gained further momentum following Delhivery’s acquisition of Ecom Express, a move widely viewed as an attempt to strengthen scale economics and improve network density in India’s fragmented parcel delivery market.
Scale, Density and Margins Becoming Key Battlegrounds
The latest commentary from Delhivery’s leadership underscores how India’s logistics competition is evolving beyond delivery speed alone.
As enterprise clients increasingly demand integrated warehousing, fulfilment, transportation, and technology-driven visibility solutions, the sector is moving toward scale-led competition where network density, asset utilisation, and operational efficiency could become stronger differentiators than subsidised pricing.
This transition is especially significant as quick commerce platforms, D2C brands, and omnichannel retailers continue to increase shipment volumes across urban and semi-urban markets.
Delhivery itself reported strong operational growth during Q4 FY26, with express parcel shipments rising 72.5% year-on-year to 306 million shipments, while express parcel revenue increased 46% compared to the previous year.
The company is also expanding internationally through its economy air parcel service, which is currently operational across the US, UK, Canada, and Australia.
A More Polarised Logistics Market Ahead?
Barua’s remarks may further sharpen competitive tensions in an already crowded logistics landscape where traditional express players, e-commerce giants, quick commerce firms, and hyperlocal delivery companies are increasingly overlapping in capabilities.
The larger question emerging from the debate is whether India’s logistics sector will ultimately consolidate around a handful of scaled neutral networks or whether captive ecosystems led by large commerce platforms can successfully emerge as independent logistics service providers.
For now, the comments signal that India’s logistics war is entering a more mature phase, where profitability, infrastructure depth, and operational control are beginning to outweigh growth-at-all-costs strategies.
