Third-party logistics firms are accelerating their focus on vertical quick commerce — where specialised categories such as fashion, beauty, pet care, gourmet, childcare, and others engage in direct fast deliveries — to drive growth. They expect the segment to be their next growth lever.
The shift in focus is also reflected in their recent financial results. Shadowfax recorded a remarkable Q4 FY26, with operating revenue increasing 74% year-on-year to Rs 1,237 crore. It also reported a net profit of Rs 56 crore as against a net loss of nearly Rs 10 crore in the year-ago period. “Vertical quick commerce platforms operate at lower order density, which makes building in-house logistics uneconomical. So, third-party logistics (3PL) becomes the natural answer, much as it did for horizontal e-commerce,” Praharsh Chandra, co-founder and CBO of Shadowfax, told FE.
Additionally, these categories need customised, category-specific fulfilment rather than commoditised delivery, which Shadowfax believes plays to its strengths. “We believe the vertical segment will keep growing as brands compete on speed and customer experience,” Chandra said.
Dark Store Expansions
Vertical quick commerce is turning out to be more profitable because, unlike grocery-led horizontal quick commerce players, the market is not controlled by two or three large players. To tap into it, Shadowfax plans to add 100 dark stores in FY27 to cater to quick deliveries. “We hope this will enable vertical quick commerce players, D2C brands and the like to leverage an alternate distribution channel for faster delivery,” Chandra added.
Legacy and large players are also tapping into the segment. For Q4FY26, Allcargo Logistics reported a 41% rise in operational profit, driven by express distribution and contract logistics. This month, Amazon launched its own 3PL service in India called Amazon Shipping, which will allow D2C brands to use Amazon’s massive logistics network for their own direct deliveries.
Vertical players are structurally more likely to work with 3PL partners because they rarely have the scale to build their own independent supply chains. “The economies of scale simply don’t play out for them on cost. That makes for higher-value, deeper engagements than horizontal models, and on balance the profitability profile plays out better for us as well,” Chandra said.
This opportunity is also expected to aid the segment shift from huge operating burns towards sustainable profitability. “The companies in the segment are unlikely to return to an operating burn environment,” Sahil Barua, CEO of Delhivery, said during the company’s recent earnings call. Logistics company Delhivery’s revenue from operations grew 18% to Rs 2,805 crore in Q3 FY26 from Rs 2,378 crore in Q3 FY25. The company’s profit rose 59% to Rs 40 crore.
Infrastructure Pivot
Vertical quick commerce is creating demand for managed dark stores, inventory operations, and dedicated last-mile fleets, something that 3PLs are catering to. “For 3PLs, this is no longer just a delivery business; it is becoming an infrastructure business with significantly higher monetisation layers,” Paramdeep Singh, founder, Long Tail Ventures and an early investor in Zippee, a quick commerce logistics startup launched in 2021.
Notably, Zippee, which helps direct-to-consumer brands offer same-day and sub-2-hour delivery through their own online stores, recently announced that it has processed 9 lakh orders in February 2026 alone, continuing its growth run across 21 cities and 125 dark stores covering major metros in India. “Vertical commerce is an attractive opportunity for logistics players because brands increasingly want quick commerce capabilities without owning and operating dark stores or delivery fleets themselves,” Singh added.
Experts expect more 3PL logistics players to pivot to express deliveries. “Most legacy 3PL players will try to participate in this structural shift over the next few years. But having said that, quick commerce is not just faster logistics but requires an entirely different operating DNA around inventory velocity, fulfilment orchestration, and real-time demand behaviour,” Singh said.
According to Mordor Intelligence, India’s 3PL market size is estimated to be at $38.18 billion in 2026 and is projected to reach $50.55 billion by 2031, growing at 5.78% CAGR over 2026-2031.