Delhivery eyes 20,000 intracity vehicles in five years

Mumbai: Delhivery expects its intracity fleet to expand to nearly 20,000 vehicles over the next four to five years from 12,000-13,000 currently, but plans to make electric vehicles the only option for new additions as it seeks to contain transportation costs and reduce dependence on volatile fuel prices.

The move comes as rising fuel, labour and other operating expenses put pressure on fleet economics. Fleet operating costs have increased by 7-10% across operators, depending on their sourcing and operating models, Prashant Gazipur, Prashant Gazipur, chief operating officer - In City Operations, said in an interview with ET.

The company plans to invest ₹80-100 crore over the next two to three years in charging and parking infrastructure and financial support for fleet partners. Assuming annual fleet growth of around 10%, Delhivery is targeting a 100% electric intracity network within four to five years. "The combined impact of fuel price volatility, inflation and higher labour-related costs" has created additional pressure on operating expenses, Gazipur said, adding that electrification was aimed at making the network more resilient.


EVs cost ₹1.5-2 lakh more upfront than comparable CNG and diesel vehicles, although energy costs are nearly 30% lower per kilometre. Tyre expenses are higher because of battery weight, but total ownership costs for sub-one-tonne vehicles are now broadly comparable, Gazipur said.