Delhivery, the IPO-bound express logistics company, signed an agreement to acquire the 100 percent stake in rival express logistics player Spoton Logistics for $200 million.
While many perceive it as a supplementary addition, market experts note that it is a complementary union of two leaders in two different segments (B2C and B2B) of express distribution.
It is observed as a disruptive episode with long-term implications across the industry that includes Delhivery could compete both in B2B and B2C, beginning of consolidation, FedEx and UPS challenging the domination of DHL, traction for omnichannel strategy and eased B2C pricing pressure. However, they also raised concerns about the cultural and technological integrations of the two companies.
Vikash Khatri, founder, Aviral Consulting, said, “Spoton is one of the top five players in B2B express logistics while Delhivery is one of the top three in B2C express logistics with a significant presence in B2B as well.”