In 2024, third-party logistics (3PL) providers solidified their dominance in India’s industrial and warehousing sector, leasing a staggering 8.6 million square feet—vastly outpacing the 900,000 square feet taken up by e-commerce players. According to data from Colliers, the 3PL sector contributed 33% of Grade A space leasing, largely driven by booming industries like engineering and electronics.
“The explosive growth of e-commerce has paved the way for well-funded 3PL ventures. For D2C brands, the promise of quick deliveries through Q-commerce has significantly streamlined cash flow management,” said Madhusudhan G, Chairman and Managing Director of Sumadhura Group, which has recently leased large spaces to prominent 3PL companies.
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The Rise of Zomato Logistics and Q-Commerce Partnerships
Delivery platforms such as Blinkit, Swiggy Instamart, and Zepto are increasingly relying on 3PL providers to meet the surging demand for faster deliveries. For instance, Zomato has introduced logistics solutions to optimize delivery efficiency. Meanwhile, key players like Delhivery, Shadowfax, and Ecom Express are expanding their fleets, and established giants like Blue Dart and Safexpress are ramping up urban networks by incorporating innovations like dark stores and advanced last-mile solutions.
Cutting Costs in E-Commerce Logistics
A growing number of e-commerce platforms are outsourcing their logistics to 3PL providers, a move aimed at reducing operational complexities and achieving cost efficiency. This trend is especially pronounced in urban markets, where quick commerce (Q-commerce) enables brands to scale efficiently across categories like FMCG, apparel, and electronics.
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Blinkit and Zepto’s Expanding Ecosystems
Platforms like Blinkit and Zepto are no longer limited to delivering essentials. These companies are now diversifying into categories such as electronics and appliances, making partnerships with 3PL providers essential for maintaining speedy urban deliveries. To meet this demand, 3PL firms are building expansive networks of small urban fulfillment nodes—up to 100 in Tier I cities alone—creating an efficient infrastructure for the growing needs of quick commerce.
As 3PL providers continue to scale their operations and optimize delivery models, they are playing a critical role in reshaping India’s logistics landscape, ensuring faster and more efficient delivery for consumers across industries.