India Intra-city Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The report covers India Intra-city Logistics Companies and it is segmented by Service (Transportation, Warehousing and Distribution, and Value-added Services) and by City (Delhi, Bangalore, Mumbai, Hyderabad, Chennai, and Others). The market size and forecasts for the India intra-city logistics market in value (USD billion) for all the above segments.

India Intra-city Logistics Market Size

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India Intra-city Logistics Market Summary
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Study Period 2020 - 2029
Base Year For Estimation 2023
Forecast Data Period 2024 - 2029
Historical Data Period 2020 - 2022
CAGR > 5.00 %
Market Concentration Low

Major Players

India Intra-city Logistics Market Major Players

*Disclaimer: Major Players sorted in no particular order


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India Intra-city Logistics Market Analysis

The size of Indian intra-city logistics market is USD 1.48 billion in the current year and is expected to register a CAGR of more than 5% during the forecast period. Intra-city logistics providers typically deal with rapid and on-demand delivery requirements and are highly dedicated to assuring same-day deliveries. As a result, the entire chain of operations is subject to demand variability.

  • Further, the last-mile delivery sector in India is on an upward trend. Despite the country being under lockdown in 2020-2021, with only critical deliveries permitted, e-commerce shipments increased drastically in the country. It is estimated that intra-city logistics accounts for approximately 15-20% of the road transport industry.
  • The COVID-19 pandemic accelerated the widespread adoption of online services. Notably, small and medium firms, which form the backbone of the Indian economy, continue to have a minimal online presence.
  • It is believed that just 20% of small firms presently offer online services, leaving a largely untapped market and limitless opportunities for the logistics sector to flourish. Intra-city logistics providers are becoming critical for these small and medium-sized firms to cater to their customers' demands.
  • Orders may suddenly rise from one city area, necessitating swift identification and connection with an available delivery person. Innovative technology is the foundation of a system that efficiently meets demand and supply needs to provide flawless function, resource optimization, and positive unit economics.

India Intra-city Logistics Market Trends

This section covers the major market trends shaping the India Intra-city Logistics Market according to our research experts:

Growing Demand for Intra-city Logistics from Tier-2 and Tier- 3 Cities

E-commerce volume growth in India's tier-2 and tier-3 cities surpasses in tier-1 cities. Further, smaller Indian cities now account for more e-commerce sales. The volume share of these smaller cities in India's e-commerce sector climbed to 21.5% in Q4 FY22 as compared to FY19. Furthermore, online spending per customer in tier-2 and tier-3 cities has increased, with these cities accounting for 46% of e-commerce sales value in Q4 2021, with a Y-o-Y growth from 28%.

During the festival season, all major e-commerce brands saw a considerable increase in new clients from these cities. During its month-long festival sale, global e-commerce giant Amazon witnessed 79% of recent buyers from towns such as tier-2 and tier-3 cities, such as Ernakulam, Guntur, Krishna, Godavari, and others.

During its month-long festival sale, value e-commerce company Snapdeal reported a 93% increase in demand from tier-3 cities. The company also added that tier-3 towns accounted for 58% of all orders, while tier-2 and tier-1 cities accounted for 15% and 27% of all charges.

Growing e-commerce demand in tier-2 and tier-3 markets has increased income for intra-city logistic startups like LetsTransport and Cogos, who provide logistic fleets (trucks and three-wheelers, among others) to companies like Amazon, Flipkart, Blinkit, and BigBasket.

LetsTransport said that an increase in delivery to tier-2 and tier-3 markets contributed significantly to the company's growth. In 2021, the company's revenue increased by more than two to four times, with tier-2 and tier-3 markets accounting for 55% of this growth. The companies are capturing this opportunity to expand their services in the country.

India Intra-City Logistics Market :  Ecommerce Volume Share in India, in (%), By Cluster, Q4 2018- Q4 2021

Demand From D2C Companies Driving Intra-city Logistics

The D2C model is becoming so popular in India that MamaEarth took only four years to generate an income of INR 100 crore (USD 13.9 Million), whereas globally recognized beauty firms have previously required 20 years.

Companies such as Sugar and MamaEarth benefited greatly from the digital D2C model, which resulted in the exponential growth of this industry. Additionally, established FMCG brands such as Himalaya, ITC, Hindustan Unilever, and others are experiencing severe competition from D2C businesses, such as MamaEarth, Pee Safe, Moms Co., and others.

The holiday season is the most profitable time for small, medium, and large merchants to generate sales and the need to meet growing demand becomes more pressing. As demand patterns are good and sellers are aware of the items that are certain to see increased customer demand, i.e., seasonal inventory, they concentrate their efforts primarily on segregating inventory for easy order pickup and delivery.

Small D2C sellers may lack the resources to manage end-to-end operations on their own, so they turn to third-party logistics and fulfillment companies for effective order administration, streamlined operations, and flawless last-mile delivery. 'Last mile,' as the name suggests, refers to the final stage of delivery and continues to remain a challenge. This is where efficient intra-city logistics and last-mile delivery services are gaining prominence.

Owing to the widespread popularity of online shopping, 3PL aggregators in India have come a long way. The majority of these firms provide full-service logistics solutions, such as inventory management, warehousing, shipping, and last-mile delivery.

Businesses like Shiprocket, Shipway, Pickrr, and others, often known as D2C enablers, have assisted hundreds of firms in streamlining these procedures to scale up quickly. The growing D2C sector is creating more opportunities within the intra-city logistics sector in line with changing customer preferences for shopping and delivery.

India Intra-City Logistics Market :  Logistics Cost by lndian D2C brands, in INR crores, 2019-2020

India Intra-city Logistics Industry Overview

The market is relatively competitive, with many local players, including FM Logistic India, Lets Transport, Shadowfax, Cogos Technologies, and Ecom Express. The industry has seen many investments in recent times. For instance, third-party logistics service provider FM Logistic India deployed its first batch of electric vehicles (EVs) in Bengaluru for intra-city last-mile delivery. The EVs will be used to carry out intra-city deliveries for WayCool, an Indian agri-commerce company, thus, driving social impact while transforming the food economy.

India Intra-city Logistics Market Leaders

  1. FM Logistics India

  2. Porter

  3. Lets Transport

  4. cityXfer

  5. Shadowfax

*Disclaimer: Major Players sorted in no particular order

India Intra-City Logistics Market Concentration
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India Intra-city Logistics Market News

  • November 2022 - Mahindra Logistics acquired delivery services provider Whizzard. Mahindra Logistic's current last-mile delivery business and its electric vehicle-based delivery services would be enhanced by the acquisition.
  • July 2022 - Bengaluru-based COGOS Technologies has acquired logistics startup Porter's FMCG modern trade business. This acquisition will strengthen COGOS' platform and allow it to meet the demand for municipal logistics.

India Intra-city Logistics Market Report - Table of Contents


    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Market




    1. 4.1 Market Overview

    2. 4.2 Technological Trends

    3. 4.3 Government Initiatives and Regulations

    4. 4.4 Investment Scenarios

    5. 4.5 Industry Supply Chain / Value Chain Analysis

    6. 4.6 Insights into the E-commerce Industry

    7. 4.7 Insights into Same Day Delivery Market

    8. 4.8 Impact of COVID-19 on the Market (Including Short-term and Long-term Effects on the Market as well as Economy)


    1. 5.1 Drivers

    2. 5.2 Restraints

    3. 5.3 Opportunities

    4. 5.4 Industry Attractiveness- Porter's Five Forces Analysis

      1. 5.4.1 Bargaining Power of Suppliers

      2. 5.4.2 Bargaining Power of Consumers

      3. 5.4.3 Threat of New Entrants

      4. 5.4.4 Threat of Substitutes

      5. 5.4.5 Intensity of Competitive Rivalry


    1. 6.1 By Service

      1. 6.1.1 Transportation

      2. 6.1.2 Warehousing and Distribution

      3. 6.1.3 Value-added Services

    2. 6.2 By City

      1. 6.2.1 Delhi

      2. 6.2.2 Bangalore

      3. 6.2.3 Mumbai

      4. 6.2.4 Hyderabad

      5. 6.2.5 Chennai

      6. 6.2.6 Others


    1. 7.1 Market Concentration Overview

    2. 7.2 Company Profiles

      1. 7.2.1 FM Logistic India

      2. 7.2.2 Porter

      3. 7.2.3 Lets Transport

      4. 7.2.4 cityXfer

      5. 7.2.5 Shadowfax

      6. 7.2.6 Cogos Technologies

      7. 7.2.7 Blowhorn

      8. 7.2.8 Ecom Express

      9. 7.2.9 TruckEasy

      10. 7.2.10 DTDC*

    3. *List Not Exhaustive

  9. 9. APPENDIX

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India Intra-city Logistics Industry Segmentation

Intra-city logistics is not just about delivering parcels in 30 minutes. It is about solving the business challenges that companies face and building capabilities to seamlessly execute any sort of goods movement irrespective of their scale and size. The Indian intra-city logistics market is segmented by service (transportation, warehousing and distribution, and value-added services) and by city (Delhi, Bangalore, Mumbai, Hyderabad, Chennai, and Others). The report offers market size and forecasts for the Indian intra-city logistics market in value (USD billion) for all the above segments.

By Service
Warehousing and Distribution
Value-added Services
By City
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India Intra-city Logistics Market Research FAQs

The India Intra-city Logistics Market is projected to register a CAGR of greater than 5% during the forecast period (2024-2029)

FM Logistics India, Porter, Lets Transport, cityXfer and Shadowfax are the major companies operating in the India Intra-city Logistics Market.

The report covers the India Intra-city Logistics Market historical market size for years: 2020, 2021, 2022 and 2023. The report also forecasts the India Intra-city Logistics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

India Intra-city Logistics Industry Report

Statistics for the 2024 India Intra-city Logistics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Intra-city Logistics analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.

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India Intra-city Logistics Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)