Surface networks reshape India’s express logistics growth story

India’s express logistics sector is entering a new phase of growth, but the biggest shift is happening away from air and towards road, as faster highways and lower costs reshape how goods move across the country. According to the ‘Winning on Speed’ report released by Aviral Consulting, surface transport now dominates domestic volumes, driven largely by e-commerce demand and cost pressures, while air cargo is moving into a more specialised and premium role. The study also highlights uneven profitability across companies, rising cost challenges and a widening gap between large organised players and smaller operators, even as cross-border logistics emerges as a key growth driver. Together, these trends point to a structural transformation in India’s express logistics model, where scale, efficiency and strong surface networks are becoming the key drivers of growth.

India’s express logistics sector is no longer being shaped only by speed, but by the ability to balance speed with affordability and scale,” said Vikash Khatri, Founder, Aviral Consulting. “The biggest shift we are witnessing is the growing dominance of surface-led networks, driven by infrastructure improvements, e-commerce demand and changing customer expectations. Air cargo will continue to remain critical, but increasingly for specialised and time-sensitive shipments."

The report was unveiled by Piyush Goyal in New Delhi on April 7, 2026, in the presence of senior government officials, industry leaders and stakeholders from across the logistics ecosystem. It describes express logistics as an “invisible engine” powering economic growth and positions the sector as critical to India’s trade and supply chain transformation.

India’s express logistics market is expanding rapidly, but the industry is evolving very differently from traditional air-led models. Surface-led networks are increasingly handling shipments that once depended on aviation, particularly in the fast-growing domestic e-commerce segment. This shift is already visible across companies such as Delhivery, TCI Express and Allcargo Gati, all of which are strengthening ground operations to improve scale and efficiency.

A market growing fast, but changing direction
India’s express logistics market is currently valued at around $9–10 billion and is projected to nearly double by 2030. Growth is being supported by strong domestic consumption, expanding e-commerce volumes and rising trade activity.

Surface express logistics now accounts for nearly 75 to 80% of domestic volumes, while air cargo handles only about 18 to 20%. This marks a major change in the structure of the industry. Road transport has become the backbone of the domestic express ecosystem, especially for companies with extensive trucking and hub-and-spoke networks such as Safexpress and DTDC.

Faster roads are closing the gap with air
One of the biggest drivers behind this transition is the sharp improvement in road logistics infrastructure. Average truck speeds have increased to around 45–50 km per hour, nearly 80% higher than a decade ago, supported by highways, freight corridors, logistics parks and network optimisation.

Deliveries that once took three to five days by road can now be completed in one to two days across many major corridors. This has significantly reduced the time advantage once held by air cargo and encouraged companies such as Mahindra Logistics and XpressBees to expand their surface-led operations.

Cost remains another decisive factor. Ground transport can be four to six times cheaper than air cargo, making it far more attractive for companies handling high shipment volumes.

E-commerce is driving the shift
More than 55% of express volumes now come from B2C shipments, largely driven by e-commerce. This segment has fundamentally changed the economics of logistics.

E-commerce companies operate on thin margins and prioritise affordability and scale over the fastest possible delivery. Customers are also increasingly comfortable with one- or two-day delivery windows instead of paying higher charges for same-day delivery.

This has accelerated the rise of surface-led logistics models across e-commerce-linked players such as Ekart, Amazon Freight, Shadowfax and Valmo, all of which rely heavily on ground networks to manage large shipment volumes efficiently.

Air cargo moves into a premium role
The findings do not suggest that aviation is losing importance altogether. Instead, air cargo is increasingly being reserved for urgent, high-value and time-sensitive shipments such as pharmaceuticals, electronics and critical industrial components.

This remains particularly important for long-distance routes and regions where road connectivity is still limited. Companies such as Blue Dart continue to maintain a strong premium positioning through aviation-led services, while operators like IndiGo CarGo and SpiceXpress remain important for specialised cargo movement.

However, with air cargo costs reaching nearly ₹72 per tonne-km, aviation is increasingly becoming a selective premium option rather than the default mode for domestic express movement.

What companies are doing on the ground
Indian logistics companies are actively redesigning their operating models in response to changing demand patterns. Safexpress and TCI Express continue to strengthen their B2B surface capabilities through large trucking fleets and time-definite delivery networks.

Allcargo Gati is focusing on network rationalisation and SME cargo, while Delhivery is concentrating on efficiency improvements and cost optimisation after achieving scale. Mahindra Logistics has focused on restructuring and improving operating performance, while XpressBees continues to face pressure from aggressive e-commerce pricing despite volume growth.

Across the industry, companies are strengthening hub-and-spoke systems, expanding automated sorting infrastructure and investing in technology-driven route optimisation to improve turnaround times and reduce operating costs.

Strong growth, but weak profitability
The financial comparison presented in the study shows that strong revenue growth has not translated evenly into profitability across the sector.

Delhivery has shown a major turnaround by achieving profitability after years of expansion, supported by network efficiency and tighter cost controls. In contrast, XpressBees continues to report heavy losses despite revenue growth, reflecting the intense pricing pressure within the e-commerce segment.

Blue Dart continues to maintain comparatively stronger margins due to its premium positioning and international integration, although its higher exposure to aviation also keeps costs elevated.

Among B2B-focused operators, TCI Express and Safexpress have maintained relatively stable performance through asset-heavy surface networks and time-definite road services. Mahindra Logistics has improved profitability through restructuring efforts, while Allcargo Gati remains in a transition phase following integration and network restructuring.

Captive logistics operations such as Ekart and Amazon Freight are focused more on supporting parent e-commerce ecosystems than on standalone profitability, allowing them to prioritise efficiency, scale and fulfilment performance.

The comparison highlights a clear trend across the sector. Companies with stronger surface infrastructure, better network optimisation and tighter cost control are in a stronger position to protect margins, while businesses exposed to aggressive e-commerce pricing or higher aviation costs continue to face profitability pressure.

Structural challenges remain
Despite strong growth, several structural challenges continue to affect efficiency across the sector. Infrastructure quality remains uneven outside major corridors, with congestion and delays still affecting movement across multiple regions.

Last-mile delivery also remains a major operational challenge, particularly in dense urban centres and remote rural markets. High return rates and failed deliveries in e-commerce further increase costs and reduce efficiency.

Workforce issues such as driver shortages and high attrition remain persistent concerns across large logistics networks, including operators such as Delhivery and Safexpress.

Technology adoption also varies significantly across the ecosystem. While large organised companies are investing heavily in automation and digital systems, smaller network partners often lag behind, creating inconsistencies in service quality.

Intense competition and pricing power keep margins under pressure
The study’s Porter’s Five Forces analysis explains why profitability remains difficult despite strong demand growth.

Competition across the sector remains extremely intense, with companies such as Blue Dart, Delhivery, DTDC, XpressBees and Shadowfax competing aggressively on pricing, service levels and delivery timelines.

Buyer power is also very high, particularly among large e-commerce platforms. Companies such as Amazon Freight and Ekart operate at enormous scale and are able to negotiate lower logistics costs, putting additional pressure on third-party operators.

The study also points to moderate entry barriers, as technology-led and asset-light models are making it easier for new players to enter selected logistics segments even though building nationwide infrastructure still requires substantial investment.

Supplier power remains significant due to dependence on fuel, labour and fleet operators, all of which continue to increase operating cost volatility across the industry.

Cross-border express gains importance
Cross-border express logistics is emerging as another major growth area and already accounts for around 30% of the market. Growth is being driven by MSME exporters, cross-border e-commerce and rising international trade activity.

Global integrators such as DHL, FedEx and UPS continue to dominate international express movement, while Indian players such as DTDC, Delhivery and India Post are steadily expanding their cross-border capabilities.

Unlike domestic logistics, international express shipments still depend heavily on air cargo, ensuring that aviation continues to remain central to cross-border movement.

Where the growth is coming from
Growth across the express sector is now being driven by two clear areas. Domestic expansion is being powered by e-commerce and large-scale surface logistics networks, while cross-border growth is being supported by trade and digital exports.

Large organised players such as Delhivery, Blue Dart and Allcargo Gati are better positioned to benefit because of their infrastructure scale, network reach and technology investments. Smaller and fragmented operators, meanwhile, continue to face increasing pressure in a highly competitive and cost-sensitive market.

A structural shift, not a temporary trend
The findings point to a clear conclusion. India’s express logistics sector is not only growing rapidly but also evolving into a more cost-efficient and surface-led model.

Road transport is becoming the primary foundation of domestic express movement, while aviation is shifting towards specialised, premium and time-critical cargo segments. Rail may gradually emerge as an alternative for certain mid-distance routes, but it currently remains a relatively small part of the logistics mix.

This transition carries major implications for the aviation industry. Domestic air cargo growth may not expand at the same pace as the wider logistics sector, forcing airlines and cargo operators to focus increasingly on high-value and specialised cargo categories.

India’s next phase of logistics growth is therefore likely to be driven less by additional flights and more by faster roads, stronger surface infrastructure and large-scale network efficiency.