Hey everyone, I’m curious about what you think of Delhivery buying Ecom Express. It seems like a big deal in the Indian logistics world.
Delhivery paid about 1,407 crore rupees for Ecom Express. That’s way less than what Ecom Express wanted for its IPO. I’m wondering if this is a good move for Delhivery or if they’re just taking on a failing company.
Some things to think about:
- Ecom Express was doing well until Meesho left them to start their own delivery service.
- Delhivery isn’t doing great since its IPO either.
- Together, they might control a huge part of the B2C logistics market in India.
- But Ecom Express is losing money every month.
- Big e-commerce companies are starting to do their own deliveries.
What do you guys think? Is this a smart move by Delhivery to stay on top, or are they just throwing good money after bad? I’d love to hear your thoughts!
i think its a smart move for delhivery. theyre getting a big chunk of the market for cheap. ya, ecom express is losing money, but delhivery can probly turn it around. they got the expertise. plus, it keeps em competitive against the big ecommerce guys. its risky, but sometimes u gotta take risks to stay on top in bizness.
From my perspective, Delhivery’s acquisition of Ecom Express is a calculated risk with potential for significant payoff. The logistics sector in India is fiercely competitive, and consolidation can provide economies of scale. By acquiring Ecom Express at a discounted price, Delhivery gains valuable infrastructure and market share without the hefty price tag of a booming company.
The loss of Meesho certainly hurt Ecom Express, but their established network and client base still hold value. Delhivery can potentially streamline operations, cut redundancies, and improve efficiency across both entities. This move also positions them better against the growing trend of in-house logistics by e-commerce giants.
However, turning around a loss-making entity isn’t easy. The success of this acquisition will largely depend on Delhivery’s integration strategy and ability to leverage synergies. It’s a gamble, but one that could solidify Delhivery’s position in the evolving Indian logistics landscape.