Ecommerce Companies Betting on Faster Delivery: Amazon Sets Up An Logistics Arm In India

After Flipkart & Snapdeal, its time for Amazon to show some moves. Aiming to reduce delivery time to enrich customer’s experience, the US-based online marketplace – Amazon has set up a logistics company in India by the name of “Amazon Transportation Services Private Limited (ATSL)”. This move is aimed to capture the country’s fast-growing online retail industry. ATSL will manage the last mile delivery and will be one of the logistics partners for Amazon’s Indian marketplace.

The regulatory filing made by ATSL show that apart from Thomas; Kuldeep Singh Bisht and Rakesh Mohan Bakshi are also directors at the Delhi-based company, which has a paid-up capital of about INR 24.8 Cr. Bakshi, Amazon India’s legal head is a director on Amazon Wholesale (India) Private Limited and Amazon Internet Services Private Limited.

Commenting on the announcement, Samuel Augustine Thomas, director of transportation, Amazon India, said, “We want to change the way how India shops. The logistics will aid in last-mile delivery to ship products faster.”

Amazon claims shipping to around 19,000 pin codes across the country and expects to touch a transaction of INR 12,000 Cr ($2 Bn) this fiscal. There are several startups like Delhivery, Blowhorn, Ecom Express in the logistics industry – providing services across the country. According to the market reports, logistics industry is expected to reach $43 Bn (INR 2.5 lakh Cr) by 2018 and see more players entering the stream.

Amid high competition environment, e-retailers are finding new ways to attract more and more buyers. Ecommerce firms have started experimenting new things lately and open to other innovative ideas related to product delivery.

Amazon India had also launched EasyShip, an assisted shipping platform for 12,000 out of its 20,000 sellers, a platform which the company has now taken global. Just a week back, Snapdeal had announced the infusion of investment in logistics company Gojavas. However, Flipkart already has a logistics company of its own by the name eKart.

Amazon currently operates nine fulfilment centres in eight Indian states. It was the first online marketplace to offer two-day and one-day guaranteed delivery in India, a norm in the US market. Post this move, Flipkart and Snapdeal also started to provide same day delivery option to remain in competition.

Just yesterday, Amazon has also launched a designer clothing store partnered with Fashion Design Council of India (FDCI). With the fashion ecommerce as the top notch the company has plans to launch about 20 designers, moving which will reach to a 100 in few months.