Delhivery makes "nominal adjustment" to customer pricing amid rising costs

Logistics company Delhivery has modestly adjusted its customer rates due to surging expenses related to workforce, fuel, air transit and other aspects of its delivery network, the company announced on Friday. The modification follows reports that Delhivery had increased shipping fees for direct-to-consumer brands at the start of September, adding Rs 4 to express deliveries and Rs 2 to surface shipments.

The company informed its clients of the price hike. This action follows similar fee hikes by e-commerce giants Amazon and Flipkart, with Amazon modifying cancellation and closure fees and Flipkart imposing penalties for certain cancellations and delays in shipping. Delhivery explained that the pricing change is a "nominal adjustment" to its customer pricing in response to recent increases in manpower, fuel, air movement and other network costs.

The logistics firm highlighted its extensive reach, dense network, scale, automation and operational efficiency, which enable it to absorb a large portion of the rise in external operational costs. However, Delhivery did not specify which services or customer groups are impacted by these adjustments. The firm reiterated its commitment to offering competitive pricing for its customers while continuing to invest in the growth and efficiency of its network.

The move precedes the festive season, a period when e-commerce and D2C companies typically experience a significant surge in order volumes, thereby exerting additional strain on logistics networks and delivery capabilities. For D2C brands, any rise in logistics costs can negatively affect fulfillment margins, particularly during this high-volume period.