Delhivery founder-CEO Sahil Barua publicly questioned the viability of Amazon’s third-party logistics offering on 18 May 2026, telling *medianama.com* that “Amazon’s third-party logistics business does not make any sense” and warning sellers against adopting the service.
Barua’s remarks came during an on-record interview with *medianama.com* after weeks of speculation that Amazon India was courting external merchants to use its fulfilment centres and last-mile network. According to the same report, Delhivery’s internal analysis shows Amazon’s pricing to third-party clients is “below cash cost” once real-estate rents, labour and fuel are tallied. Barua added that Amazon’s own e-commerce volumes are insufficient to absorb the fixed cost of the extra capacity, forcing the platform to subsidise outside customers at the expense of its core retail margins.
The critique lands at a time when India’s third-party logistics market is projected to exceed $20 billion by FY27, according to RedSeer data cited by *medianama.com*. Rivals such as Delhivery, Ecom Express and Xpressbees have spent the past two years consolidating hubs and automating sort centres to reach break-even on per-shipment economics. Amazon’s entry with loss-leader rates, Barua argued, risks compressing yields across the sector and could trigger renewed discounting wars reminiscent of 2020-21.
Amazon India has not yet responded to Barua’s comments. The company’s next public disclosure is expected during its quarterly earnings call in late July 2026, when analysts will look for updates on the scale and unit economics of the third-party logistics pilot. Until then, sellers and investors will watch whether Amazon widens the service beyond the current Delhi-Mumbai-Bengaluru triangle or pauses expansion amid the scrutiny.
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