Iyer has been in fine form with the bat so far in the tournament, but hasn't had much leadership experience at the highest level of the game. The team bought some exciting players in the auction but halfway through the round robin stage they've lost five out of six matches and their skipper has stepped down.
The Daredevils had also named Gambhir, who had represented the Delhi franchisee in the first three years of the IPL, to lead the team.
"It is absolutely my decision".
Shreyas Iyer, Mumbai's talented 23-year-old batsman will be the new skipper - he was one of two players to be retained - as Daredevils looked to make a fresh start though playoff hopes are fast receding. I was not good enough and that is all.
"It's never too early and it's never too late as well".
The franchise tweeted: "Dear #DD fans we would like to share @GautamGambhir has chosen to step down as a captain for @DelhiDaredevils a decision taken by him only. I was not good enough and that is all", he said.
The Daredevils will host the Kolkata Knight Riders at the Feroz Shah Kotla in Delhi on Friday (April 27). He scored 55 in the opening game before failing in the next four innings. It was a collective batting failure from the team. He is available for selection like any other player. Gambhir will, however, continue to be part of the team. "I would like to congratulate him for having put the team ahead of himself", Ponting said. There aren't many such examples in India. "He will carry on with DD as a mentor and play a bigger role", he told the media.
Daredevils have struggled with poor team balance and performances in the last few seasons.
"I would like to thank the management, the coaches and Gauti bhai for selecting me as captain", Iyer said. For someone of his stature and cricketing record, to take a decision like this is incredible.
"Maybe the only thing I can point out is I was desperate to turn things around". He should get credit for what he's done. He said that there is still an opportunity for DD to change things around in their favour.
Daredevils coach Ricky Ponting still believes the team can turn around their season and go on to lift the trophy in May.