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Economic Times
13 hours ago
- Business
- Economic Times
Amazon India plans Rs 2,000 crore investment in 2025 to enable faster deliveries
Amazon India said Thursday that it will invest Rs 2,000 crore this year to expand and upgrade its operations infrastructure, aiming to make ecommerce deliveries 'faster and more reliable'. This has come when horizontal ecommerce marketplaces are facing stiff competition from 10-minute delivery platforms.'These latest investments reflect our commitment to continually expand and upgrade our operations across our fulfilment, sortation, and delivery network,' said Abhinav Singh, vice-president-operations, Amazon India and Australia. Amazon recently rolled out its quick commerce offering, Now, across select pin codes in Bengaluru, and plans to expand the 10-minute delivery network to Delhi-NCR and Mumbai as well. With this, Amazon has entered a buzzy space where players such as Blinkit, Swiggy's Instamart, Zepto, BigBasket, Flipkart Minutes and Reliance Retail's JioMart are already operating. In 2023, Amazon CEO Andy Jassy had said that the company, which had already invested $11 billion in India cumulatively at the time, plans to increase the total investment to $26 billion by 2030. The latest announcement of Amazon investing in its operations infrastructure has come at a time when the broader ecommerce sector has been witnessing a slowdown in growth. In the calendar year 2024, growth in India's e-tail market slowed down to 10-12% from over 20% in the previous years, as per a Bain & Company and Flipkart report. In fiscal 2024, Amazon Seller Services, the Indian marketplace entity of the US ecommerce giant, posted a 14% rise in operating revenue at Rs 25,406 crore. While revenue growth outpaced the 3% increase in FY23, it lagged rates seen during the pandemic period. Revenue had grown 32% in FY22 and 49% in FY21. Its net loss narrowed in FY24 by 28% to Rs 3,469 crore. In a December 2024 interview with ET, Amazon's senior vice president for India and emerging markets, Amit Agarwal, had said that the company wanted to make sure that the growth it's driving is towards a profitable business. 'We've been thoughtful in how we make our investments. We've made significant improvements in reducing the cost structures for our businesses so sellers can add more selections at lower prices,' he had company said on Thursday that it was investing in tools that measure 'route complexity and ensure equitable distribution of delivery routes, while allowing adequate time for each delivery'. Among other steps, Amazon India said it is streamlining its delivery operations by enhancing its app to simplify the process for delivery personnel. The company is introducing improved navigation tools to help locate unstructured or hard-to-find addresses more efficiently. Amazon also operated its in-house logistics service Amazon Transportation Services (ATS) – but this is being merged into Amazon Seller Services, as reported by ET in May.
Time of India
16-05-2025
- Business
- Time of India
Amazon merges Indian logistics arm with marketplace entity to streamline operations
Amazon Transportation Services (ATS), the American ecommerce giant's Indian logistics arm, is merging with Amazon Seller Services , the primary marketplace entity in India, according to a board approval document filed by the latter with the Registrar of Companies (RoC) and accessed by ET. The National Company Law Tribunal (NCLT) has granted interim clearance for the merger. According to Amazon's filings with the NCLT, the merger is being conducted to reduce legal and regulatory compliance requirements and better manage the infrastructure and other resources of the two companies. Responding to queries from ET, Amazon said, 'Like most multinational companies, Amazon has a number of subsidiaries around the world, and we regularly evaluate our organisational structure. The purpose of this transaction is to simplify our organisational structure.' ATS was set up in 2013 as an in-house logistics arm for the ecommerce marketplace and derives over 95 per cent of its revenue from Amazon. In 2023, the company opened its logistics services to third-party clients as well. Amazon's rival Flipkart also has an in-house logistics company, Ekart Logistics, while SoftBank-backed Meesho last year launched Valmo, its in-house logistics software platform, which aggregates logistics service providers for its sellers. For fiscal year 2024, ATS reported a 7.6 per cent increase in operating revenue to ₹4,889 crore from ₹4,543 crore a year earlier. The company's net loss narrowed by 6.9 per cent to ₹80 crore, from ₹86 crore in FY23. Amazon Seller Services, meanwhile, had reported ₹25,406 crore in operating revenue during FY24, growing 14 per cent as against just 3 per cent in FY23.
Time of India
15-05-2025
- Business
- Time of India
Amazon India board clears merger of logistics arm with marketplace entity
Amazon Transportation Services (ATS), the American ecommerce giant's Indian logistics arm, is merging with Amazon Seller Services , the primary marketplace entity in India, according to a board approval document filed by the latter with the Registrar of Companies (RoC) and accessed by ET. The National Company Law Tribunal (NCLT) has granted interim clearance for the merger. According to Amazon's filings with the NCLT, the merger is being conducted to reduce legal and regulatory compliance requirements and better manage the infrastructure and other resources of the two companies. Responding to queries from ET, Amazon said, 'Like most multinational companies, Amazon has a number of subsidiaries around the world, and we regularly evaluate our organisational structure. The purpose of this transaction is to simplify our organisational structure.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Never Put Eggs In The Refrigerator. Here's Why... Novelodge ATS was set up in 2013 as an in-house logistics arm for the e-commerce marketplace and derives over 95% of its revenue from Amazon. In 2023, the company opened its logistics services to third-party clients as well. Amazon's rival Flipkart also has an in-house logistics company, Ekart Logistics , while SoftBank-backed Meesho last year launched Valmo , its in-house logistics software platform, which aggregates logistics service providers for its sellers. Live Events For fiscal year 2024, ATS reported a 7.6% increase in operating revenue to Rs 4,889 crore from Rs 4,543 crore a year earlier. The company's net loss narrowed by 6.9% to Rs 80 crore, from Rs 86 crore in FY23. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories Amazon Seller Services, meanwhile, had reported Rs 25,406 crore in operating revenue during FY24, growing 14% as against just 3% in FY23. In calendar year 2024, growth in India's e-tail market slowed 10-12% from over 20% in previous years, as per a Bain & Company and Flipkart report. During fiscal years 2022 and 2023, ATS received a total capital infusion of Rs 1,140 crore across multiple tranches, of which Rs 400 crore came in FY23. However, the company's global parent has not made any fresh funding infusion since January 2023. Besides ATS and Amazon Seller Services, the US-based company operates Amazon Pay, its fintech business, through a separate entity, and Amazon Wholesale. India's e-commerce regulations, which allow foreign-owned companies to operate in the online retail space only on a marketplace model, also stipulate that any services provided by these platforms to sellers, including warehousing, logistics, or fulfilment, are done in a fair manner, on an arm's length basis. In the case of Amazon, legal experts said that any impact of the existing ecommerce rules is unclear given that the US-based parent already owns 99% of both ATS as well as Amazon Seller Services. 'The 2018 press note (pertaining to FDI rules on ecommerce) said that the marketplace entity cannot hold a direct or indirect stake in any of its sellers or service providers,' said a Delhi-based lawyer. 'This was done to reduce the influence of the marketplace on the level-playing field. Any services that the marketplace provides have to be on an arm's length basis.' Amazon is reportedly looking to spin off its India business for a potential public listing here. Sources say that the move to merge ATS into Amazon Seller Services is unrelated to this. Walmart-owned Flipkart, which is currently domiciled in Singapore, has begun the process of flipping to India ahead of its planned initial public offering in 2026.
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Business Standard
09-05-2025
- Business
- Business Standard
Amazon India leases 94,000 sq ft office space in Mumbai's Vikhroli
Amazon India's various entities have leased office space in Mumbai's Vikhroli with a leasable area of approximately 94,254 square feet (sq ft) at a monthly rent of ₹1.73 crore, according to lease-related data provided by CRE Matrix, a real estate data analytics firm. Amazon entities—including Amazon Seller Services, Amazon Development Centre India, Amazon Data Services India, and Amazon Smart Commerce Solutions—have leased several office units at Godrej Two in Vikhroli East. Godrej Two is a commercial real estate project developed by Mumbai-based Godrej Properties. The building was constructed by Larsen & Toubro, the Indian multinational conglomerate. Godrej Green Homes has leased the space to the aforementioned entities for a period of five years (60 months). The leases commenced on 1 January 2025, with a 48-month lock-in period for the licensees. The rent will escalate by 5 per cent per annum from the commencement date. Amazon Seller Services has leased the largest portion—42,700 sq ft of office space—including 27 complimentary and 10 payable car parking spaces, at a starting monthly rent of ₹78.6 lakh. Amazon Development Centre India has leased 19,926 sq ft of office space with 13 complimentary and four payable car parking spaces, at a rent of ₹36.7 lakh per month. Amazon Data Services India has taken up 16,447 sq ft, with 10 complimentary and three payable car parking slots, at a starting rent of ₹30.3 lakh per month. Meanwhile, Amazon Smart Commerce Solutions has leased 15,181 sq ft of space with 10 complimentary and three payable car parking spaces, at a monthly rent of approximately ₹28 lakh. The car parking charge is reportedly ₹8,508.55 per car park per month. All the leases were finalised at a rental rate of ₹184 per sq ft per month. None of the entities paid any security deposit for the transaction, which was registered on 30 April 2025 with the relevant government authorities.
