Introduction:
Among the scurrying streets of Gurgaon, a midnight food order gave way to a conversation that would be remembered as the change in India’s logistics industry. It was in the night, and two enterprising spirits, Sahil Barua and Suraj Saharan, happened upon discussing unemployment with a delivery boy. Little did they know that this chance encounter would introduce them to Delhivery-a company that would go on to change the way goods moved around the world’s second-most-populous nation.
Key event or challenge:
It was 11:30 PM when Sahil and Suraj decided to pay the restaurant owner, Anuj Bajaj, a visit. The duo saw an opportunity when they were told that Bajaj intended to shut down his business and send his staff off to other places. “Bring it on, we’ll hire everybody,” they said while building the foundation of what would go on to become India’s largest B2B, B2C, and C2C logistics provider.
Subject’s journey or product development process:
Delhivery started in 2011 as a hyperlocal food delivery firm guaranteeing the delivery of meals within one hour. However, its founders immediately realized the enormous potential in the e-commerce sector. They decided to pivot into addressing the gaps in logistics infrastructure in India and eventually expanded into warehousing, transportation, and last-mile delivery services.
While that sounds like a fairytale, the road to success wasn’t all smooth-sailing. In the initial days, Delhivery had to face skepticism from businesses wary of e-commerce models. Traditional courier services remained the favorite choice despite the hassles related to tracking shipments. Besides, setting up physical warehouses across different cities required huge resources and logistics expertise as well.
Overcome obstacles:
Delhivery adopted a multi-pronged approach to overcome these challenges. Its executives focused on building confidence among people through transparent tracking systems and ascertaining the fact that the package has actually reached them. It invested heavily in technology, creating proprietary software that showed it how to route more efficiently.
One of the most credited strategies they had in place included competitive pricing with no subscription fees. This helped them get all sorts of clients, ranging from small businesses to big e-commerce giants. With the expansion of the network, Delhivery placed a strong emphasis on ensuring that the customer experience was good for both the sender and the receiver.
Achievements or innovations:
Delhivery’s innovative approach to logistics paid off. By 2021, the company had achieved several remarkable milestones such as the completion of over 1 billion successful orders, covering 18,000+ pin codes across the country, building 2,521 direct delivery centers, and implementation of a 24*7 delivery model.
The company’s success led to much investment by venture capitalists, including SoftBank, Tiger Global, and The Carlyle Group. In May 2022, Delhivery went out with an IPO worth $690 million, placing the value at an impressive $4.6 billion.
Delhivery kept innovation at the core. The company introduced automated sorting centers, deployed over 5,000 trucks moving on the road, and used data analytics to smoothen its supply chain. The company has also adopted new emerging technologies for studying the usage of drones in last-mile delivery in remote areas.
Delhivery’s influence also cut across its business scale. Thousands found employment through the firm, especially in smaller towns and cities. Delhivery helps support the increased e-commerce business of India through an efficient network of logistics that allows enterprises of varied sizes to reach their customers.
As Delhivery continued to grow, two new challenges arose: increased competition and the requirement to maintain service quality at scale. Delhivery responded with a core tenet of continuous improvement, training employees, and scaling technology.
Timeline of key events:
– 2011: Delhivery is founded as a hyperlocal food delivery service
– June 2011: First e-commerce client signed, Urban Touch
– 2013-2019: Raised successive rounds from venture capitalists
– 2021: Completed 1 billion successful orders
– December 2021: Partnered with FedEx Express for strategic alliance
– May 2022: Launched IPO, valued at $4.6 billion
Lessons Learned or Key Takeaways:
Indeed, the growth of Delhivery from a small startup into a logistics giant teaches a lesson or two to budding entrepreneurs. Their growth proves one thing-finding the gap in the market and doing a quick pivot towards resolving it. By focusing on technology, customer service, and competitive pricing, Delhivery disrupted the traditional logistics industry.
