Amazon Invests $16.7 Million in its Logistics Arm to Push Delivery Services

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Global ecommerce giant Amazon has invested $16.7 million (₹ 122 crore) in its logistics arm, Amazon Transportation Services (ATS), to boost its delivery services across India.

Launched in March 2015, Amazon Transportation Services has received an investment of over $92.4 million (₹ 675 crore) in multiple fundings.

According to Registrar of Companies filings for FY18, Amazon’s logistics arm recorded nearly 60% revenue growth year-on-year. For FY18, revenue grew to $217.25 Mn (INR 1,574 Cr) from $135.53 Mn (INR 991 Cr), a year back.

Logistics is crucial to  Amazon’s delivery promises under its Prime service, which offers same day delivery, 2-4 hours delivery etc. With the new round of funding,  the company is looking to scale up its delivery capacity and gain an edge in the highly competitive Indian ecommerce space.

To date, Amazon has established 67 fulfillment centres in the country across 13 Indian states. The company has recently launched new centres in Bengaluru, Mumbai, Delhi, Vijayawada and Kolkata.  Amazon is planning to launch more exclusive services in India to get an edge over its counterparts. According to reports, the company is looking to introduce Project Armada in India, which allows sellers to use their own delivery trucks.

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