‘Quick commerce is killing kiranas, not e-commerce’: Delhivery CEO

In an interview with the Economic Times, Delhivery’s CEO, Sahil Barua, shared his views on quick commerce and the e-commerce market in India. 

He believes that 10-15 minute deliveries are sustainable only for groceries and fast-moving consumer goods (FMCG). Barua added that these quick timelines may only be viable short-term for other categories as the true costs become evident. 

Barua mentioned that Delhivery is launching a network of shared dark stores to facilitate 2-4 hour deliveries, but the company will avoid instant deliveries.

Regarding Delhivery’s recent performance, Barua said that revenue growth has been slow due to market conditions and competition, but the company has returned to profitability in the April-June quarter. 

He said the focus remains on expanding the part-truck load (PTL) business, which has shown efficiency gains, contributing to improved profitability.

Barua was optimistic about the next 6-9 months, predicting growth despite potential volatility. He also commented on the overall e-commerce outlook, suggesting that while the festive season might bring 15-18% growth, it’s unlikely to be a breakout year.

On the topic of quick commerce, Barua noted that it primarily affects FMCG and Kirana stores rather than the broader e-commerce market. 

Barua told ET, “I’m not sure that quick commerce is eating (share from e-commerce). The reality is quick commerce is eating shares from Kirana stores.”

He pointed out that quick commerce is fueled by significant financial burn and questioned its long-term sustainability.

Finally, Barua welcomed the trend of startups going public, seeing it as a necessary evolution for the industry, even if it comes with challenges. Despite Delhivery’s stock being below its IPO price, he emphasised focusing on long-term value for stakeholders.

Social Media Reaction:

Online users resonated with Barua's words and added their own thoughts.

One user wrote, "While reading this I could feel a seasoned professional is talking unlike with many startup founders."

Another user wrote, "Interesting perspective from Sahil Barua. I think he's right, 10-15 minute deliveries might not be sustainable for all products. In the UAE, we've seen some success with this model, but it's crucial to consider the environmental and economic impact."