Zomato, Blinkit, Zepto & other E-comm cos turn to 3rd-party logistics players to cut costs

In 2024, third-party logistics players (3PL) continued to dominate the industrial and warehousing sector. Leasing 8.6 million sq ft—far surpassing the 900,000 sq ft leased by e-commerce firms. The 3PL segment accounted for 33% of Grade A space leasing, driven by growth in sectors like engineering and electronics, according to data from Colliers.

"The rapid growth in e-commerce has fuelled the emergence of new well-funded 3PL ventures. The convenience of D2C brands to deliver products in very short time through Q-commerce has given a significant boost to managing their cash flows," said Madhusudhan G, Chairman and Managing Director of Sumadhura Group, which recently leased spaces to large 3PL firms.

Zomato Logistics Solutions and Partnerships Reshape Delivery Models

Platforms like Blinkit, Swiggy Instamart, and Zepto are leveraging third-party logistics players to cater to the increasing demand for quick deliveries. These partnerships, including Zomato logistics solutions, are optimizing delivery operations while ensuring cost efficiency. For instance, companies like Delhivery, Shadowfax, and Ecom Express are expanding fleets. While established firms like Blue Dart, Safexpress scale urban networks with innovations such as dark stores and faster delivery solutions.

Cost-Cutting in E-Commerce Logistics

The growth in partnerships between 3PL providers and e-commerce platforms highlights a shift towards cost-cutting in e-commerce logistics. By outsourcing logistics, companies reduce operational complexities and focus on scaling their offerings. This trend is particularly significant in urban markets, where quick commerce (Q-comm) is enabling brands to manage economies of scale across FMCG, apparel, and electronics.

Blinkit and Zepto Partnerships

With platforms like Blinkit and Zepto diversifying their offerings beyond essentials, partnerships with third-party logistics players are becoming critical. These collaborations aim to address the growing urban demand for quicker deliveries across categories like electronics and appliances. This shift demands an expansive network of small urban nodes—up to 100 in Tier I cities creating a robust ecosystem for fulfillment.

Expanding the Horizon: 3PL and Industry Trends

In 2024, large deals exceeding 200,000 sq ft represented about 40% of total demand, dominated by third-party logistics players with 35% of transactions. Engineering and electronics sectors also saw significant growth, with the latter experiencing a 4.5-fold increase in large deals year-on-year. The Delhi NCR region led the uptake in large-sized deals, underscoring the importance of urban logistics hubs.

According to Vimal Nadar, Senior Director and Head of Research at Colliers India, "Healthy market fundamentals reflect confidence of both occupiers and developers. Moreover, the Chennai industrial and warehousing market is poised to grow further over the next few years. By its positioning as a leading industrial zone and established automobile manufacturing hub of Southern India."

With a 22% increase in new supply reaching over 28 million sq ft in 2024. The demand for third-party logistics players is expected to rise further, shaping the future of logistics and e-commerce in India.

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