India’s leading e-tailer Flipkart invests 16 billion rupees in its logistics arm, Ekart. The investment is part of Flipkart’s strategy to beef up its logistic services across India.
Moreover, it helps the company catch up with Amazon’s prime membership service which promises delivery within two days.
The investment will be used to set up more ekart logistic service centres in India, with an emphasis on remote areas.
More ekart delivery centres will be opened in cities where Flipkart has massive customer base.
Flipkart hopes to deliver products faster than Amazon through this move. Presently, most of Flipkart’s products are being delivered through ekart. On the other hand, Amazon too is betting big on reinforcing its logistics arm Amazon Transport Services.
Flipkart has 30 warehouses and fulfillment centres under Ekart while Amazon has 41 fulfillment centres across India.
Ekart will soon be delivering third party products to expand the scope of its business. The company is in discussion with some of the leading firms in grocery segment for a tie up.