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Amazon merges Indian logistics arm with marketplace entity to streamline operations, ET Auto

Amazon merges Indian logistics arm with marketplace entity to streamline operations, ET Auto

by admin
May 16, 2025
in Auto News
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Amazon Transportation Companies (ATS), the American ecommerce large’s Indian logistics arm, is merging with Amazon Vendor Companies, the first market entity in India, in line with a board approval doc filed by the latter with the Registrar of Corporations (RoC) and accessed by ET.

The Nationwide Firm Regulation Tribunal (NCLT) has granted interim clearance for the merger. In line with Amazon’s filings with the NCLT, the merger is being carried out to cut back authorized and regulatory compliance necessities and higher handle the infrastructure and different sources of the 2 firms.

Responding to queries from ET, Amazon stated, ‘Like most multinational firms, Amazon has a lot of subsidiaries around the globe, and we repeatedly consider our organisational construction. The aim of this transaction is to simplify our organisational construction.’

ATS was arrange in 2013 as an in-house logistics arm for the ecommerce market and derives over 95 per cent of its income from Amazon. In 2023, the corporate opened its logistics providers to third-party purchasers as effectively.

Amazon’s rival Flipkart additionally has an in-house logistics firm, Ekart Logistics, whereas SoftBank-backed Meesho final 12 months launched Valmo, its in-house logistics software program platform, which aggregates logistics service suppliers for its sellers. For fiscal 12 months 2024, ATS reported a 7.6 per cent improve in working income to ₹4,889 crore from ₹4,543 crore a 12 months earlier. The corporate’s internet loss narrowed by 6.9 per cent to ₹80 crore, from ₹86 crore in FY23.

Amazon Vendor Companies, in the meantime, had reported ₹25,406 crore in working income throughout FY24, rising 14 per cent as towards simply 3 per cent in FY23.

  • Revealed On Could 16, 2025 at 08:08 PM IST

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Tags: AmazonarmAutoentityIndianLogisticsMarketplacemergesOperationsStreamline

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