Amazon India to use mom-and-pop shops as delivery points
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Global online retailer Amazon has partnered with more than 20,000 local “kirana” stores in India to serve as delivery points.
The move is part of the firm’s “I Have Space” program to build relationships with such stores in 350 Tier 1, 2 and 3 cities within the territory. It reflects competitor Flipkart’s recent investment in its ShadowFax network of neighborhood stores.
“We believe the recent partnerships are expected to drive Amazon’s momentum across the country’s shoppers and mom-and-pop shops,” read a report by stock research firm Zacks. “Consequently, this will bolster the company’s presence in the retail space of India, which holds immense prospects.”
Local stores stand to benefit from the initiative from the extra income they may receive as Amazon’s delivery partners.
The Zacks report notes that Amazon’s stocks have returned just 14.2 percent over the past year, well below the industry’s rally of 22.4 percent.
Questions & Answers
Q.How many kirana stores has Amazon partnered with in India for deliveries?
How many kirana stores has Amazon partnered with in India for deliveries?
Amazon has partnered with over 20,000 local "kirana" stores across India. These stores will serve as delivery points as part of the company's "I Have Space" programme in various cities.
Q.What is the purpose of Amazon's "I Have Space" programme in India?
What is the purpose of Amazon's "I Have Space" programme in India?
The programme aims to build relationships with local stores, using them as delivery points. This initiative helps Amazon bolster its presence in India's retail sector and drive momentum among shoppers and mom-and-pop shops.
Q.How do local shops benefit from this partnership with Amazon?
How do local shops benefit from this partnership with Amazon?
Local shops participating in the initiative stand to gain extra income. They become delivery partners for Amazon, which is expected to support their businesses and increase their engagement with the e-commerce giant.
Q.How has Amazon’s stock performed recently compared to the industry average?
How has Amazon’s stock performed recently compared to the industry average?
Amazon’s stocks have returned 14.2 percent over the past year. This performance is notably below the industry’s rally, which saw an average return of 22.4 percent during the same period.
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