Amazon India and India Post have signed a memorandum of understanding (MoU) that will see the two companies collaborate to harness the postal service’s extensive last-mile delivery network, enabling Amazon to deliver nationwide.
The companies will closely synchronize operations through integration and knowledge exchange to maximize efficiencies, optimize resource utilization and explore capacity sharing across their logistics networks.
Over the past couple of years, India Post has more than doubled its footprint across Amazon’s logistics network and how has pickup points at 13 locations across the country. Amazon also became the first e-commerce company to enable an end-to-end integrated cash-on-delivery solution with India Post. This, along with overall improvements, has resulted in an almost 3x increase in the volume of Amazon parcels being delivered via India Post in the past 18 months.
Modernization journey
Commenting on the extended partnership, Vandita Kaul, secretary (Posts), Department of Post, said, “India Post, with its extensive network of about 165,000 post offices, is uniquely equipped to democratize e-commerce across the nation. Our partnership with Amazon represents a significant leap forward in our efforts to bridge the digital divide, enhancing e-commerce across for all citizens.
“Aligned with the vision set forth by the Hon’ble Minister of Communications, Shri Jyotiraditya M Scindia, the government is focused on transforming the Department of Posts into a fully fledged logistics service provider.
“Department of Posts acknowledges the importance of strategic alliances in our journey toward modernization and growth as a logistics backbone. We remain committed to providing technology-driven, operations-focused logistics services capable of responding to the evolving needs of the e-commerce landscape.”
Effective partnership
The new MoU will enable Amazon to effectively serve customers across all 19,300 pin codes and Army locations across India’s post offices.
Amazon’s partnership with India Post now extends to cross border trade too – last year, the two signed an MoU to create an integrated cross-border logistics solution that will expand the e-commerce exports opportunity to micro, small and medium enterprises (MSMEs) across the country.
Abhinav Singh, VP operations, Amazon India, commented, “Our relationship with India Post has been a pivotal part of Amazon’s growth story in India and has contributed to making e-commerce a nationwide phenomenon. By joining forces with this iconic institution that has served India for decades, we have been able to create new benchmarks in logistics and customer service repeatedly over the years.”
Faster deliveries
Amazon India has also expanded its partnership with Indian Railways to scale up faster deliveries across the country. According to Amazon, the partnership will be crucial enabling one-day and two-day deliveries on products across India this peak season.
The two parties have agreed to work toward identifying hub-and-spoke networks, priority railway zones, mega parcel hubs and implement strategies for efficient movement from hubs to spokes.