Amazon’s Logistics Arm Sees 7.6% Jump In Revenue, Narrows Net Loss By 6.9%

Amazon’s logistics arm, Amazon Transportation Services (ATS), recorded a revenue increase of 7.6% in FY24, marking an improvement from FY23’s INR 4,543 Cr to INR 4,889 Cr, as per the regulatory filing accessed by Tofler. 

Notably, ATS primarily facilitates Amazon’s vast ecommerce network in India through shipping and logistics operations.

While ATS saw a marginal reduction in its net loss, lowering it by 6.9% to INR 80 Cr from INR 86 Cr last year, expenses saw an upward trend.

The company’s total expenses rose by 7% to INR 5,004 Cr, with key costs including employee benefits at INR 624 Cr and additional operational expenses at INR 3,975 Cr. 

The overall total income reported for FY24 was INR 4,946 Cr.

Meanwhile, Amazon is mulling a standalone payments app in the rising payments industry in India. The plans come at a time when the ecommerce major has been ramping up efforts to drive the growth of its digital payment services arm.

In June, Amazon infused INR 600 Cr (about $72 Mn) in Amazon Pay India, taking its overall investment in the arm to INR 1,950 Cr. 

Amazon Pay India secured the approval from the Reserve Bank of India (RBI) to operate as a payments aggregator (PA) back in February. Besides, it also holds a prepaid payment instrument (PPI) licence. 

In a bid to further expand its fintech offerings, the entity is reportedly working with the National Payments Corporation of India (NPCI) to roll out credit services to customers through the Unified Payments Interface (UPI) since April. 

Notably, launched in 2019, Amazon Pay UPI offers a wide range of financial services, including money transfers, bill payments, insurance purchases, travel bookings, and investments in mutual funds and digital gold through Amazon’s ecommerce app.