Delhivery CEO Questions Amazon’s 3PL Push, Says It’s “Old Product In New Wrapper”

Sahil Barua Raises Concerns Over Amazon’s Logistics Expansion

Delhivery CEO Sahil Barua has questioned the strategic value of Amazon opening its logistics network to third-party businesses in India, calling the move “an old product in a new wrapper.”

Speaking during the company’s quarterly earnings call, Barua said Amazon’s third-party logistics (3PL) model had already been attempted earlier and he remains unconvinced about its long-term value proposition for merchants.

Amazon recently expanded its logistics offering in India, allowing businesses to use its warehousing, transportation and delivery network even for orders placed outside Amazon’s own marketplace platform.

Delhivery Flags Scale And Prioritisation Concerns

According to Barua, one of the biggest challenges in Amazon’s 3PL model is the scale imbalance between Amazon’s internal operations and external merchants using Amazon Logistics.

He argued that any outside merchant integrated into Amazon’s logistics network would remain significantly smaller compared to Amazon’s own shipment volumes, potentially creating service prioritisation issues.

Barua specifically highlighted last-mile delivery concerns, stating that delivery personnel under time pressure would naturally prioritise Amazon’s own orders over third-party shipments.

“That’s the way first-party logistics are designed,” he said during the earnings call.

The Delhivery CEO also claimed that captive first-party logistics systems are structurally more expensive than neutral third-party logistics providers, even after including Delhivery’s own margins.

According to him, merchants may hesitate to rely on a logistics partner that cannot fully prioritise their business interests while also operating at a potentially higher cost structure.

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Barua Questions Competitive Positioning Of XpressBees

Commenting on consolidation trends in India’s express logistics industry, Barua said the current market structure involving Delhivery, Blue Dart and Shadowfax appears “sensible and appropriate.”

He added that he does not see room for several additional large-scale players in the sector and also questioned whether XpressBees possesses any structural advantage over existing listed companies.

Barua further criticised aggressive expansion strategies adopted during earlier industry growth cycles, stating that some firms had “voluntarily set their balance sheets on fire” through excessive spending and operational burn.

Delhivery Reports Strong Revenue Growth In Q4 FY26

Last week, Delhivery reported a 30% year-on-year increase in operating revenue to Rs 2,850 crore during Q4 FY26, while net profit remained largely flat at Rs 72 crore.

The company’s shares were trading around Rs 456 on Monday afternoon, giving Delhivery a market capitalisation of nearly Rs 34,175 crore, or approximately $3.7 billion.

The comments from Barua come as India’s logistics and supply chain sector witnesses rising competition, increasing consolidation and rapid expansion driven by e-commerce growth and faster delivery expectations.