New Delhi: The West Asia conflict has left a visible mark on delivery economics across Asia, with logistics costs in the region climbing nearly 19% on a year-on-year
basis between March and May 2026, according to a report by logistics software-as-a-service company Fareye. The survey was carried out in the aftermath of the West Asia conflict, which has put significant pressure on fuel supplies and transportation costs.
“The research finds that delivery costs across APAC have risen 18.9% year-on-year on average. For India, where fuel prices, driver wages and urban congestion are structural cost drivers, this number is not a surprise. What is a surprise is the nature of the blind spot, operators can see where cost lands, fuel, labour, vehicles, carrier bills, but not where it is actually created,” the Fareye report said.
India’s first-attempt delivery failures drain profits
In dense urban markets across India, failed first delivery attempts can run as high as 20-30%, which the report identifies as a primary driver of profit erosion for logistics operators, compounded further by rising fuel and input costs.
Speed vs reliability: What customers actually want
The survey challenges the assumptions driving India’s quick commerce boom. While the sector has attracted billions in investment over three years on the promise of 10 and 20-minute deliveries, customer preferences tell a different story. Some 41% of customers said predictable delivery time was their priority, compared to just 22% who preferred the fastest possible delivery.
“Customers do not primarily want faster. They want to know when their delivery will arrive and trust that it will arrive then. The implication for India is significant, the capital flowing into speed infrastructure may be partially misdirected. Reliability, not velocity, is the premium product,” the report said.
Indian customers willing to pay delivery premium
Around 60% of customers said they would pay extra for delivery in specific situations such as urgent essentials like medicine and groceries, time-window delivery, high-value items and business-critical shipments. On the business side, 70% of companies in India said their customers are willing to pay a premium for certain deliveries.
