Nicely written; I'm just not able to comprehend their optionality for Saas, I mean we can make a case for it in a way like AWS was for amazon but AWS was part of Amazon here its more or less their operation, maybe I'm just reading it wrong. Enjoyed reading.
Nicely written; I'm just not able to comprehend their optionality for Saas, I mean we can make a case for it in a way like AWS was for amazon but AWS was part of Amazon here its more or less their operation, maybe I'm just reading it wrong. Enjoyed reading.
So for Delhivery the Logistics OS is actually similar to AWS at Amazon. AWS started as a service within Amazon for internal use before they spun it out for everyone else to leverage. Delhivery is following the same strategy with their 'Logistics OS'. The optionality here refers to the ability to increase blended overall margins. Margins in core Delhivery business are in the range of 15 to 20% but SaaS margins can be as high as 90%, so if SaaS offering takes off, Delhivery margins can increase and thus their valuations.
Nicely written; I'm just not able to comprehend their optionality for Saas, I mean we can make a case for it in a way like AWS was for amazon but AWS was part of Amazon here its more or less their operation, maybe I'm just reading it wrong. Enjoyed reading.
Thank you Vivek
So for Delhivery the Logistics OS is actually similar to AWS at Amazon. AWS started as a service within Amazon for internal use before they spun it out for everyone else to leverage. Delhivery is following the same strategy with their 'Logistics OS'. The optionality here refers to the ability to increase blended overall margins. Margins in core Delhivery business are in the range of 15 to 20% but SaaS margins can be as high as 90%, so if SaaS offering takes off, Delhivery margins can increase and thus their valuations.