India’s vast road network and relatively shorter inter-city transit times are keeping trucking firmly at the centre of the country’s logistics ecosystem, according to Delhivery MD & CEO Sahil Barua, who said road transport continues to offer the biggest untapped opportunity for the logistics company.
Speaking during the company’s earnings call, Barua explained that despite the growth of rail and air cargo infrastructure, India’s geographic and operational realities still favour road transportation for most commercial freight movement.
Road remains the fastest practical option
Barua said road transport dominates logistics systems across most major economies and remains especially effective in India because distances between key commercial hubs are not large enough to create a compelling advantage for alternative modes such as rail or air cargo.
He pointed out that Delhivery’s tractor trailers can complete trips between Delhi and Mumbai in under 20 hours, reducing the need for modal shifts to rail for mid- and long-distance cargo.
According to him, the speed and flexibility of trucking continue to outweigh the benefits offered by other transport systems for the type of cargo Delhivery handles.
Rail infrastructure not optimised for cargo
Barua noted that India’s railway network is primarily designed around passenger movement rather than large-scale cargo logistics.
He said rail transport works efficiently for commodities and agricultural supply chains that rely on captive freight networks, but added that such cargo categories are not Delhivery’s focus areas.
For express logistics and part-truckload operations, he said road transport offers better connectivity and operational flexibility compared with railway-linked freight movement.
“The business that we are in, road is predominantly going to continue to remain the focus,” Barua said during the call.
Air cargo expansion not an immediate priority
On air freight, Barua said Delhivery already has enough shipment volumes across its network to potentially support a larger dedicated air cargo operation. However, he cautioned that operating a small-scale cargo airline would not be economically viable.
He said maintaining a fleet of four to six aircraft would involve prohibitively high operating costs, making standalone expansion into air cargo commercially unattractive at this stage.
Instead, Delhivery plans to continue using commercial passenger aircraft belly cargo capacity while exploring strategic partnerships with airline operators for future air cargo opportunities.
Barua also observed that the Indian aviation sector is currently focused on broader industry challenges, limiting immediate opportunities for large-scale collaboration.
Fuel price hikes passed on to customers
Addressing concerns around rising fuel prices, Barua said Delhivery follows an industry-standard diesel-linked pricing mechanism, particularly in its part-truckload business.
He explained that freight pricing is indexed to diesel prices, allowing fuel cost increases to be passed on to customers through contractual arrangements.
In the express and e-commerce logistics business, the impact of fuel prices is comparatively lower, though Delhivery still uses diesel price hike clauses with customers depending on margins and shipment volumes.
Barua added that airline fuel surcharges linked to rising aviation turbine fuel costs are also being transferred to customers where applicable.