As per an Economic Time Report, Amazon Transportation Services Private Limited, a subsidiary of US-based Amazon, will ship goods from sellers who transact on the company's online marketplace in India. Its rivals
Samuel Augustine Thomas, director of transportation for Amazon in India, told the financial daily that the logistics arm has been set up to aid in last-mile delivery as products can be shipped faster.
At present, Amazon ships products to some 19,000 pin codes across the country. It will continue to do so, or maybe add more areas in it delivery list, with ATSL that will be one of the logistics partners for Amazon's Indian marketplace.
Amazon surely seems to have made a right move as the "lastmile delivery" is a crucial front in the war for leadership in India's ecommerce industry, which is pegged at $43 billion (Rs 2.5 lakh crore) by 2018.
Ankur Bisen, senior VP at retail consulting firm Technopak, also feels the same. He told ET, "All large marketplaces have opened their own last-mile logistics arms in India as the capability to deliver goods next day doesn't exist in India's logistics sector…It makes sense to hive off (logistics divisions) or operate as separate arms as they may achieve a scale and reach their full potential by servicing other ecommerce companies.".