Delhivery CEO questions Amazon network

Delhivery chief executive Sahil Barua used the company’s latest earnings commentary to challenge Amazon’s push to sell more of its logistics network to outside businesses. On May 18, Barua said Amazon’s opening of its captive network to external merchants did not clearly solve the cost and service problems that third-party sellers face. (moneycontrol.com) His remarks came less than two weeks after Amazon announced Amazon Supply Chain Services, a broader logistics offering for businesses beyond its own marketplace sellers. Amazon said the service would include freight, distribution, fulfillment and parcel shipping. The exchange matters because it sets out two competing pitches in logistics. Amazon is arguing that the network it built for its own retail business can now be sold more widely. (aboutamazon.com) Barua is arguing that a network built first for one company’s own shipments will struggle to convince outside merchants that their orders will get equal treatment. ### What exactly did Barua object to? Sahil Barua said the economics of first-party logistics were the first problem. “First-party logistics is more expensive than third-party logistics,” he told analysts, adding that he was “not entirely clear” why customers would choose a captive network that could not prioritize their interests. (moneycontrol.com) Barua also challenged the strategic framing of Amazon’s move. He called it “an old product in a new wrapper” and said he was not certain what strategic value it served for merchants using the service. Those comments were reported after Delhivery’s quarterly earnings call following its March-quarter results. (aboutamazon.com) ### Why does a captive network raise service concerns for outside sellers? Barua said the issue becomes most visible in last-mile delivery. He told analysts that when a rider has to choose which package to deliver while running out of time, the first-party order would naturally be prioritized over a third-party shipment because that is how first-party logistics networks are designed. (moneycontrol.com) The scale gap was another part of his argument. Barua said Amazon’s own shipment volumes would dwarf those of any outside client using the network, raising questions about customer service and operational attention for smaller merchants. That is a service concern, not just a pricing one, in his telling. (moneycontrol.com) ### What did Amazon announce this month? Amazon said on May 4 that it was launching Amazon Supply Chain Services and opening its logistics capabilities to businesses “of all types and sizes,” not only Amazon sellers. The company said the offer would let businesses use Amazon’s freight, distribution, fulfillment and parcel shipping capabilities, and named Procter & Gamble, 3M, Lands’ End and American Eagle Outfitters among early users. (moneycontrol.com) Peter Larsen, vice president of Amazon Supply Chain Services, said Amazon was extending infrastructure and technology built for its own operations to outside businesses. Amazon compared that move to the way it built Amazon Web Services after first developing cloud infrastructure for internal use. (medianama.com) ### Has Amazon already been offering logistics to merchants in India? Amazon Shipping’s India site shows the company was already pitching parcel delivery to businesses outside Amazon’s marketplace before this month’s broader global announcement. The site says merchants can sell through their own websites or other e-commerce channels, arrange pickup, and use Amazon’s network to deliver parcels across more than 14,000 pin codes in India. That makes Barua’s criticism partly about scope and positioning rather than a wholly new category. (aboutamazon.com) His “old product in a new wrapper” line suggests he sees the latest announcement as an expansion or repackaging of an existing logistics capability rather than a structural break in how outside merchants are served. That is an inference drawn from his remarks and Amazon’s existing India shipping offer. ### Why did the comments surface now? Delhivery reported on May 16 that fourth-quarter net profit was about 73.4 crore rupees, broadly flat from a year earlier, while revenue rose 30%. The company also said FY26 revenue reached 10,486 crore rupees and that it turned free-cash-flow positive for the year. The comments on Amazon came as investors questioned Delhivery management during the post-earnings call about competition and logistics pricing. (shipping.amazon.in) Amazon Shipping’s India site is advertising a seller event in Kolkata on May 21, 2026, and Amazon said on May 4 that businesses can now sign up for Amazon Supply Chain Services. Delhivery’s earnings materials for the quarter ended March 31 were presented on May 16, with Barua’s remarks emerging in reporting on May 18. (moneycontrol.com) (shipping.amazon.in) (moneycontrol.com)