Amazon Emphasizes More On Logistics Arm, Infuses More $62.7 Million In ATS
Recently, some months back, ATS —a logistics arm of Amazon—had bagged two funding rounds; $32 Million in June and $10 Million in September 2016.
Amazon, in the present condition, has planned to expand its logistics services in India. The e-commerce giant had recently announced that it will also provide delivery services for its competitors such as Snapdeal and Flipkart. It has also rolled out a test program to understand the potential of the services. Moreover, it is presently working with 300 enrolled sellers.
Previously, AWS (Amazon Web Services) was utilized by various e-commerce players and e-retail Internet companies. It appears that Amazon is now investing heavily to acquire the similar position in Indian logistics sector with its ATS.
The company, about two months back infused $260 Million (Rs 1,680 Crore) in its seller services. This infusion took the total figure to around $2.1 Billion (Rs 13,800 Crore) in its Indian unit.
It is also said that Amazon India has refreshed its shipping charges for sellers who use Amazon Transportation Services in order to distribute orders to out-of-state consumers. The revised shipping charges are already into effect from August 8, 2017, and will be operated under Fulfilled by Amazon (FBA) program.
Amazon, which is into tough business war with Flipkart, is also trying to acquire the lucrative sectors in the Indian ecosystem. Right from the start of the year, it has been seen that how the Seattle-based company is aggressively trying to get into the sectors such as digital payments and grocery in India. It freshly invested $20 Million in Amazon Pay India. The company has also received a green signal from the government to invest $500 Million in Indian food retail sector. It is projected that the food retail venture will be initiated in Diwali.
Logistics is another drastically growing vertical in India apart from digital payments and grocery, which is expected to flourish up to $307 Billion by 2020. As affirmed in one of the statements, “Amazon intends to transform ATS into an independent logistic service, which will be a rival forindependent logistic players such as FedEx, BlueDart, and Flipkart’s Ekart.”
Now the only thing needs to be seen is that how well Amazon’s action plan works with these huge monetary infusions and initiatives to tap the unexplored sectors. Looking at its series of expansion moves, it seems that the company is gearing up itself for the future-based requirements.