**Ecom Express Faces Employee Exodus Amid Delhivery Acquisition**
**Meta Description:** Nearly 150 Ecom Express employees resign as Delhivery’s acquisition looms, signaling potential industry consolidation and changes in the logistics landscape.
**URL Slug:** ecom-express-delhivery-acquisition-employee-resignations
**Ecom Express Faces Employee Exodus Amid Delhivery Acquisition**
In a significant shift within the logistics sector, nearly 150 mid-level and regional operations employees at Ecom Express have resigned, with expectations that CEO Ajay Chitkara and other senior executives may follow suit once the Competition Commission of India (CCI) approves Delhivery’s acquisition of the company. This information comes from sources familiar with the situation.
Earlier this year, Ecom Express laid off at least 500 employees after halting its plans for an initial public offering (IPO). The company, which previously employed around 15,600 individuals and serviced over 27,000 pin codes, is now facing a wave of voluntary resignations as employees anticipate that many roles will become redundant post-acquisition.
One insider noted, “CCI’s approval is likely to come through in the next 45 days,” indicating that the impending changes are prompting employees to seek other opportunities. Another source mentioned that the acquisition is expected to lead to significant cost savings, further motivating employees to opt out.
A spokesperson for Ecom Express stated that the company is unable to comment while awaiting regulatory approval, and Delhivery has also refrained from making any statements on the matter. Chitkara did not respond to inquiries regarding the situation.
During a recent earnings call, Delhivery’s CEO and managing director, Sahil Barua, expressed confidence in the company’s ability to integrate Ecom Express employees into its operations. He stated, “The regular attrition in Delhivery’s network itself will provide us sufficient room to absorb all qualified staff from Ecom Express.” He emphasized that new hires would undergo thorough training and that the acquisition would involve approximately ₹300 crore in integration costs.
In April, Delhivery announced a definitive agreement to acquire a controlling stake in Ecom Express for around ₹1,400 crore in cash. This acquisition is pending CCI approval, after which Ecom Express will operate as a subsidiary of Delhivery. Notably, less than a year ago, Ecom Express was valued at approximately ₹7,000 crore.
Barua also highlighted the potential for further consolidation in the delivery ecosystem, suggesting that the era of “suicidal pricing” in the market is coming to an end. He remarked, “There were too many players in this market in the previous quarter. Our acquisition of Ecom Express has not changed that dynamic.” He noted that the survival of unprofitable companies in the sector will depend on their remaining capital, indicating that consolidation or exit is likely for those without a clear path to profitability.
As Delhivery moves forward with this acquisition, it anticipates growth in parcel volumes, signaling a transformative period for the logistics industry.
**FAQ**
**What impact will the Delhivery acquisition have on Ecom Express employees?**
The acquisition is expected to lead to significant changes, including potential redundancies in roles, prompting many employees to resign voluntarily as they seek new opportunities.
