Flipkart, Amazon Flex Logistics Muscles; Will It Bring New Growth Levers?

Amazon and Flipkart are monetising their vast logistics networks by serving external brands, marketplaces, and enterprises beyond their ecommerce platforms.

The Delhivery–Ecom Express deal created a market gap in remote regions, allowing Amazon Shipping and Ekart to emerge as attractive alternatives.

Logistics is evolving from a cost centre into a growth business, with Amazon and Ekart offering end-to-end services spanning freight, warehousing, fulfilment, and last-mile delivery.

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When Delhivery acquired Ecom Express in 2025, the Indian logistics industry read it as a consolidation play — a larger player absorbing a struggling rival to build scale. What few anticipated was the vacuum it would create.

Ecom Express had been servicing some of the most remote pin codes in the country, carrying last-mile deliveries for D2C brands and vertical marketplaces in markets that the larger organised players had never prioritised. 

After the acquisition, operations in many of these non-demand centres were either scaled back or the combined Delhivery-Ecom Express entity’s pricing moved sharply upward.

Into that gap stepped two companies nobody had considered third-party logistics providers: Amazon and Flipkart.

“Essentially Ecom Express was servicing some of the remotest centres and pin codes of the country and its market included D2C brands and vertical marketplaces. After the acquisition by Delhivery, the operations were either scaled down in non-demand centres or the consolidated entity’s pricing went so high that Amazon and Flipkart were seen as viable alternatives — they were already present in these markets,” said Raju Sinha, chief business officer at logistics aggregator FShip.

“Essentially Ecom Express was servicing some of the remotest centres and pin codes of the country and its market included D2C brands and vertical marketplaces. After the acquisition by Delhivery, the operations were either scaled down in non-demand centres or the consolidated entity’s pricing went so high that Amazon and Flipkart were seen as viable alternatives — they were already present in these markets,” said Raju Sinha, chief business officer at logistics aggregator FShip.

Outside the festive season windows and marketplace-specific sales, the logistics capabilities of both Amazon and Ekart warehousing capacity, truck fleets, delivery workforce far exceeded the demand generated internally. Assets that cost billions to build were sitting underutilised for large parts of the year.

“This is the primary moat which has driven both Amazon and Flipkart to partner with even competitor marketplaces, apart from D2C brands and retail brands in areas still unserviceable by Blue Dart or where Delhivery charges 18–20% higher prices,” an industry source told Inc42.

The result is a strategic shift that is shaking up the competitive dynamics of a $300 Bn-plus logistics market. Amazon and Flipkart’s Ekart built to serve their own marketplace sellers are now openly competing with Delhivery, Blue Dart, Shadowfax,........

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