Logistics unicorn Delhivery and Volvo Trucks have joined hands to test and deploy a new transport solution for express operations that will help them address the challenges in speedy delivery and cost efficiencies of services.
Volvo’s unique solution of a tractor-trailer combination, the Volvo FM 4×2, that has been running in Europe will be deployed by Delhivery to help the startup achieve faster turn-around time, expand its fleet and increase productivity.
“… we are building some of India’s largest trucking terminals at key locations in Delhi, Mumbai and Bangalore, while expanding and upgrading our own fleet and bringing in more partner fleets. Our partnership with Volvo and the first deployment of Tractor-Trailers in Express Trucking is a significant step towards getting future ready,” said Sahil Barua, chief executive officer and co-founder, Delhivery.
olvo’s custom-built solution will enhance the efficiency Delhivery’s Express cargo movement through trailers of higher capacities, maintaining an average running of over 20 hours a day and 3,00,000 km in a year.
“We are building a vital link in the logistic chain. We have seen productivity improving by up to 20%. ” said Vinod Aggarwal, managing director and CEO, VE Commercial Vehicles Ltd.
Delhivery’s Barua said the new fleet was inducted into their operations towards the end of 2019 as a pilot and has operated successfully on long haul lanes. The fleet covers over 20,000 km per vehicle per month, which is significantly higher than industry benchmarks and its own network average.
While the pandemic disrupted operations for companies like Delhivery, Barua said that remobilising the network was a challenge initially, but after that the company reoriented its network to deliver essential goods like medicines and all their trucks were soon back on the road. “We are delivering 1.5 million orders per day today, which is more than what we were doing pre-covid,” added Barua.
Currently, the Gurugram-based startup delivers across 17,500 pin codes and 2300 cities, towns, and villages across the country every day.
“India is an an anomalous market, we don’t have large scale logistics companies like FedEx and UPS and that is the space Delhivery wants to be in… we are investing in building world class infrastructure with cutting edge technology,” said Barua.
Based on the success of the pilot, Volvo expects a significant shift to larger tractor-trailers in the express trucking industry. “This will only lead to fewer vehicles on the road, lesser fuel consumed to ship cargo, and, subsequently, a lower cost of shipping for the end customer,” added Barua.