Amazon is expanding its delivery system; Your Flipkart order could be delivered by Amazon

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Amazon is expanding its logistics services and placing big bets on delivery services. The online marketplace wants to deliver products of registered sellers even if the orders are placed on its rivals sites such as Flipkart, Snapdeal, etc.

Amazon India wants to enhance its distribution system. Besides, it also wants to enter food delivery services and compete with Swiggy.

Amazon will soon float a pilot project for its logistic services with 300 sellers for this who are registered in its marketplace, three industry executives aware of the plans told ET.

The company's own logistic service is undertaken by Amazon Transportation Services (ATS).

"Amazon wants to build ATS into an independent logistic service which competes against Flipkart's Ekart and other independent logistic services like Blue DartBSE -1.24 % and FedEx. It has started with its own sellers, but eventually will even look at offering logistic services to brands and other businesses. ATS has recently hired a lot of executives from leading courier companies,” one of the industry executives told ET.

The logistic sector specific to online retailing in India was valued at $0.46 billion in 2016 and is projected to witness a CAGR of around 48% in the next five years to reach $2.2 billion by 2020, according to a report by KPMG and CII.

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