Now, Amazon sellers to drive delivery trucks under new Project Armada

Now, Amazon sellers to drive delivery trucks under new Project Armada
Photo Credit: Photo Credit: Reuters
8 Oct, 2018

US e-commerce major Amazon is all set to implement its American model in India that enables sellers to drive trucks for delivery, said a report.

The Economic Times (ET) on Monday reported that Amazon has partnered logistics companies in India to supply vehicles to the sellers under Project Armada, whose pilot has already rolled out in Delhi.

Citing people it did not name, the report said Amazon wants to run 1,200 vehicles in a year under the programme, which is expected to account for 20% of the e-commerce firm’s deliveries by the second year.

In June, Amazon had announced it was all set to work with small businesses in the US by providing vehicles with the Amazon logo at a discounted lease, along with fuel, insurance, and other benefits.

Queries to Amazon did not get any response till the time of publishing this story.

Amazon Business is another programme that was first launched in the US and later rolled out in India.

Last year in September, the e-commerce firm launched Amazon Business, a marketplace catering to the procurement needs of small and medium enterprises (SMEs) such as technology and service companies, manufacturers, universities, schools and offices.

Amazon Business provides SMEs with access to over 100 million products, including network storage solutions, electronics, and office supplies, with invoices compliant with the Goods and Services Tax.

Amazon Business was first launched in the US in April 2015 and now serves more than one million enterprise customers. It operates in five countries.

Besides launching new projects, Amazon is also strengthening its logistics entity.

Last year in November, Amazon Transportation Services Pvt. Ltd received Rs 130 crore ($20 million) from its US-based parent.

Amazon, which had committed $5 billion for its India operations, has always been bullish on the country. Last year in September, it had bought a five per cent stake in local bricks-and-mortar retail chain Shoppers Stop Ltd to expand its network of physical shopping points. 

In a very recent development, mid-market private equity firm Samara Capital and Amazon.com Inc. signed an agreement to buy Aditya Birla Retail Ltd’s food and grocery retail chain More.