Logistics provider Delhivery announced the full rollout of its on-demand intracity shipping app, ‘Delhivery Direct’, in Delhi-NCR and Bengaluru. This announcement comes after Delhivery executives stated during the Q4FY25 earnings call that the service, launched in Ahmedabad, would soon expand to other metro cities.

According to a regulatory filing, the service enables pickups within 15 minutes of booking for local deliveries by two-wheelers, three-wheelers, and four-wheelers for larger consignments. Besides intracity deliveries, the application also allows intercity shipments to Delhivery’s currently serviceable pincodes.

Notably, part of the company’s Rs 6 crore loss in Adjusted EBITDA during Q4FY25 was attributed to its ‘Delhivery Direct’ business, which was still in the supply creation phase. On the flip side, the company directed a portion of its customer additions—including small and medium-sized enterprises (SMEs)—towards the expansion of this business.

With this launch, Delhivery competes with the likes of Porter, Shiprocket, and Borzo in the same-city delivery space. In May 2025, Uber also launched a Courier XL service for heavy shipment delivery after witnessing a 50% year-over-year (YoY) rise in deliveries during 2024. The ride-hailing service had first introduced its same-day delivery service in 2020.

While Delhivery doubles down on this service, the exit of other hyperlocal delivery platforms raises questions about the vertical’s viability. E-commerce platform Dunzo’s Rs 1,081 crore losses in FY23 and its consequent shutdown air a cautionary tale. The company had dabbled in Dunzo Daily before returning to errand-style deliveries, but the absence of adequate capital led to insolvency and closure.

Likewise, Swiggy also halted its personal errand service Genie, citing “operational constraints” in 2025. However, the food delivery platform had earlier discontinued the service in 2022, aiming to prioritise food and grocery deliveries. A Reddit user who claimed to work at Swiggy stated that, coupled with a limited supply of drivers, Genie impacted Instamart’s speed and availability.

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Although Delhivery is expanding its intracity personal errands service, it is opting against the dark-store-based model for hyperfast intracity orders. In the company’s Q3FY25 earnings call, Delhivery Co-founder & CEO Sahil Barua noted that the two-hour delivery model allows servicing metro cities without requiring excess dark stores. While the company aims to establish 50 stores across the top eight metros, expansion beyond these will depend on demand patterns. However, the company does not expect significant growth, estimating Rs 80 to Rs 100 crore as the maximum achievable revenue for this service in FY26.

Elaborating on the limited growth opportunity, Barua added that metros contribute only 8–9% of the total e-commerce volume, and that half of those products include speciality and apparel items that don’t fit into the quick commerce model.

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