Ecommerce logistics firms give aggregators a price shock

Representative Image. A new battle has begun between the country’s three largest ecommerce-focused logistics firms and new-age logistics aggregators. Delhivery , Ecom Express and Xpressbees have simultaneously increased shipment charges by as much as 35-40% for orders received via online logistics aggregators such as Shiprocket, Pickrr, Shipyaari and others, said people with knowledge of the development .

The hike in prices effective earlier this month, said those briefed on the matter, is more tactical in nature as the logistics players found that aggregators were offering aggressive pricing for per-shipment deliveries compared with their own rates for enterprise clients or even SMEs.

Aggregators such as Shiprocket don’t own warehouses or build their own delivery infrastructure. They aggregate orders and route them to companies like Delhivery, Ecom Express and others. These platforms started gaining traction for aggregating delivery orders from niche direct-to-consumer (D2C) brands, local businesses and other SMEs while players like Delhivery, Xpressbees and the like dealt directly with enterprise clients with a higher shipment volumes. Sources said the ecommerce-focused delivery firms were also spooked by some of their enterprise clients being wooed by aggregators with cheaper rates.

ET has also seen emails from Delhivery and Xpressbees informing aggregators of the revision in pricing for them.

Delhivery, Shiprocket and Pickrr didn’t respond to queries. Ecom Express cofounder and CEO TA Krishnan, Xpressbees cofounder and CEO Amitava Saha and Nayan Ratandhayara of Shipyaari declined to comment.

“In order to continuously grow shipment numbers, the aggressive pricing has led to significant disruption,” said one of those cited above. “For smaller orders from aggregators, they (delivery firms) have to now share their bandwidth on these clients while enterprise clients also raised questions how an aggregator is offering cheaper prices to them compared to when they are working directly with a delivery firm.”

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