Amazon, the E-Commerce giant has started initiating talks with India Post to develop a delivery mechansim based on smart logistics and with this it is looking to do in India what Alibaba did in China. According to reports in the print, Amit Agarwal, India Head of Amazon met the Union IT Minister Mr. Ravi Shankar Prasad to discuss on this and it is learnt that the government has sought a detailed report on the same. Amazon started its association with India Post last year and current uses India Post as a delivery channel. The company is looking for a business model like what Alibaba did in China where it tied up with China Post to share processing centres, delivery resources and even warehouses. The effort of the company would be to create a smart logistics network for faster deliver services.
India Post has currently got 1.6 lakh post offices and on an average a post office serves a population of 7,175 people. If the tie up works out for Amazon, the company would be able to reach out to the rural customers as well where nearly 1.4 lakh post offices of India Post are located. With this tie up, Amazon would be looking to increase the speed of the last mile deliver, an area where most of the online retailers are investing. This report comes on close on heels of another report which said Amazon is looking to invest USD 2 billion in India and is looking to set up a data centre in India. Amazon has agreed to put up a server in India looking at the potential of online retailing in the coming years.
Once if it takes off Amazon through the route of India post could give a platform to small retailers and enterpreneurs in far off places as well and it would help in creating new market place models.
