Delhivery drops as Amazon opens supply chain

Indian logistic firm Delhivery fell as much as 3.5% in early trade after Amazon opened its supply chain services to other businesses.

The move may increase competition for logistics contracts.

Amazon said the service lets companies store and ship goods through its freight, warehousing, fulfillment, and parcel network.

FedEx and UPS shares each fell more than 9% in US trading after the announcement.

Delhivery also approved 100,360 employee stock options under ESOP 2012 from May 1 at an exercise price of Re 1 per share.

🧠 Food for thought

Implications, context, and why it matters.

Delhivery’s recent profit looks thin, which helps explain the market’s response to Amazon entering third-party supply chain services.
In Q3 FY26, Delhivery posted net profit of 396 million rupees (US$4.17 million), but non-operating income carried the result. Other income equaled 120.42% of profit before tax, so profit before tax without it was negative 1.
Capital efficiency also trails peers. Average return on equity was 0.45%, versus 30.90% at Blue Dart Express, an Indian logistics and package delivery company 1.
That leaves Delhivery exposed if Amazon uses its deeper pockets to push prices lower.

The step suggests a wider shift as captive logistics networks like Amazon’s and Flipkart’s Ekart, Flipkart’s in-house logistics arm, open up to other businesses 2.
That could make last-mile delivery, the final step of getting a package to the customer, more uniform. What used to be an internal cost can now be sold as a pay-as-you-go service 3.
Direct-to-consumer (D2C) brands and small businesses may gain access to more than 14,000 pin codes, or postal service areas, without building their own network 3.
More rivalry may speed up consolidation among smaller logistics firms. Delhivery’s acquisition of Ecom Express, an Indian third-party logistics company, aimed to add scale 4.