Wednesday 4 December 2013

Amazon and India Post

Even though Amazon's announcement of using drones to deliver packages have been termed as a PR stunt for 'Cyber Monday', in India trying differently. Amazon already sends packages by India Post but now it wants to use the channel to collect payments from recipients as well, using the cash-on-delivery model. Amazon has started a pilot with India Post to test this system, which could help it reach deep into India's hinterland, according to two people familiar with the matter. Amazon would gain reach while India Post would benefit from the company's aggressive growth plans. India Post has more than 150,000 post offices in India, out of which 89% are in rural areas. 


India Post has applied to the Reserve Bank of India for a banking licence, seeking to leverage its wide reach. The central bank is expected to announce the grant of bank licences in January. The Amazon plan, if it goes through, will fit in nicely with the postal department's plans. India Post aims to spend about Rs 100 crores in the next few years to set up warehouses for ecommerce packages.  Meanwhile in USA Amazon has partnered with the troubled US Postal Service last month to start Sunday deliveries. 


Source : http://economictimes.indiatimes.com/tech/internet/amazon-starts-pilot-project-with-india-post-to-test-cash-on-delivery-model/articleshow/26811521.cms


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Thanks and Regards,
Vaisakh Krishnan
12DM-155
EBUS-Section B

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