Amazon to scale up India’s parcel business
In a significant development aimed at strengthening logistics and e-commerce in India, the Department of Posts (DoP) under the Ministry of Communications and Amazon Seller Services Private Limited have signed a Memorandum of Understanding (MoU) to deepen their collaboration.
The MoU was signed by Sh. Kushal Vashist, General Manager, Parcel Directorate, Department of Posts, and Sh. Venkatesh Tiwari, Director, Operations, Amazon Seller Services Pvt Ltd, in New Delhi in the presence of Ms. Vandita Kaul, Secretary (Posts) and Sh. Aman Jain, Director Public Policy, Amazon.
Amazon and the Department of Posts in India have been working together since 2013, utilizing DoP’s network for parcel transmission. The Department of Posts, with its deep reach, and Amazon, one of the world’s largest e-commerce companies, together seek to empower India’s growing e-commerce sector by enhancing logistical capabilities, supporting job creation, and contributing to economic growth.
The agreement builds on a longstanding partnership, with Amazon leveraging the extensive postal network for the transmission and delivery of parcels across India. The signing was witnessed by senior officials from both organizations, marking a key step towards enhancing business operations, capacity sharing, and network utilization.
Key Highlights of the MoU:
- Objective: To jointly explore opportunities in logistics and business expansion, enabling Amazon to increase the use of DoP’s extensive postal network for parcel delivery across India.
- Increased Collaboration: The MoU outlines key areas of cooperation, including synchronization of logistics operations, knowledge-sharing, and capacity-sharing opportunities.
- Regular Review Mechanisms: Both parties will conduct quarterly reviews to monitor the progress of their collaboration and explore new avenues for strengthening their partnership.
Benefits to Amazon:
Amazon will gain increased access to DoP’s extensive infrastructure, which includes over 1.6 lakh post offices, making it possible to reach customers even in the most remote regions. This partnership will streamline Amazon’s logistics operations and support its growing e-commerce needs.
Benefits to the Department of Posts:
The collaboration will bolster DoP’s parcel business by scaling up parcel transmission and delivery. By working closely with Amazon, DoP will enhance its expertise in e-commerce logistics and drive efficiency in its operations, supporting India’s broader goal of becoming a global logistics hub.
