India’s Intra-city Parcel Market To Grow At 40-50% CAGR, Report Reveals
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India’s Intra-city Parcel Market To Grow At 40-50% CAGR, Report Reveals

Mahindra Logistics To Build 6.5 Lakh Sq Ft Facility With Rs 170 Cr Investment

Redseer states that intra-city parcel orders are expected to reach 1.5 to 2 billion by CY30

Emphasising that India’s intra-city parcel market processed approximately 280 million orders in the Calendar Year 2025 (CY25), a report has highlighted that the figure is expected to reach around 1.5 to 2 billion orders by CY30, clocking a compound annual growth rate (CAGR) of 40 to 50 per cent a year.

The report by Redseer noted that with small and medium-sized enterprises (SMEs), large volumes of business demand still move through unorganised channels. Digital platforms provide on-demand dispatch, real-time tracking and transparent pricing. With C2C, the use case is still a work in progress, while ride-hailing platforms are widening the consumer base by converting their existing bike taxi user base into parcel senders.

Redseer added that As SME relationships deepen on-platform, delivery profiles shift toward higher-value vehicle categories. Light Commercial Vehicles (LCVs) and trucks carry five to ten times the revenue per trip of a two-wheeler. This multiplies revenue per customer without proportional volume growth.

Organized C2C parcel penetration remains low and the use case is still building. While Parcel-first platforms have served C2C from the beginning, ride-hailing platforms are a recent catalyst. This widens the consumer base because it converts monthly bike taxi users into parcel senders at near-zero acquisition cost, the report added.

Redseer noted that 45 to 55 per cent of bike taxi captains use their idle time and complete more deliveries.

Vehicle Mix Shaping Market Structure
The report explained that two-wheelers account for around 75 per cent of completed orders but bring in only 40 per cent of GBV. Non-two-wheelers account for around 25 per cent of completed orders across three-wheelers, LCV and trucks. Together, their delivered GBV is around 60 per cent from just around 25 per cent of order volume, the report emphasised.

“Tier 2 and 3 cities will carry the next wave of the largest untapped SME demand. While ride-hailing platforms have a head start, parcel-first platforms are also expanding along SME trade routes where suppliers’ relationships already exist,” the report authored by Nikhil Dalal mentioned.

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