Amazon Launches Logistics Network In India After Walmart-Backed Flipkart

Amazon.com Inc AMZN quietly began offering its transportation and logistics network as a service to third-party merchants, businesses, and direct-to-consumer brands in India, TechCrunch reports.
Amazon tapped its large delivery chain to drive revenue in the critical overseas market as it attempts to replicate a model it has been testing in the U.S. for several months.
The service, called Amazon Shipping, offers "extensive reach and the highest reliability at the lowest logistics cost," the report cited the company.
Also Read: Amazon Bumps Payout For US Warehouse, Delivery Workers
Amazon Shipping "will pick up your parcels seven days a week and deliver them to your customers," the company adds.
The retailer, which has poured over $6.5 billion in India over the past seven years, says its offerings are shipping at "competitive rates" and include a dedicated support channel. There's no additional fee for deliveries on weekends and no contract formality for a consignment.
The report added that it has partnered with local firms Shiprocket, Unicommerce, Easyecom, Clickpost, and Vinculum for order and delivery management systems. The company has tested the service in India for at least a few months.
As Amazon expands the Shipping service, it may become a headache to local firms, including Delhivery, Ecom Express, and even legacy logistics giants, including Blue Dart and India Post. Flipkart, the Walmart Inc WMT-backed rival of Amazon in India, also began to open its logistics network to third-party firms earlier this year.
Amazon Shipping covers all types of products other than dangerous goods and restricts the number of shipments items to 99 per order.
Amazon opened its logistics network to third-party merchants in the U.S. earlier this year with a service called Buy with Prime.
Analysts say that Amazon can pose a more significant challenge to rivals like Shopify with the move because it has built a nearly "impregnable moat in logistics."
Price Action: AMZN shares closed lower by 0.49% at $90.53 on Monday.
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