For a while now, we have been following a series of initiatives to strengthen packaging, delivery and logistics in the ecommerce sector. This is in tune with the various challenges that ecommerce firms face in getting the product delivered to a customer including products being stolen, delivery boys threatening a customer’s security and heavy baggage creating a health hazard for logistics employees.
Competition, Checkmate!
Every single time one of these challenges cropped up, the online retail industry responded in the best possible way, right from designing special last-mile delivery bags, requesting government help to improve employee verification to aggressively expanding and tying up with more courier service providers to ensure that customers have the best possible online shopping experience.
However, it seems like Amazon may give all other Indian ecommerce players a checkmate with its new plan. According to reports, Amazon is eyeing Blue Dart, which it wants to join hands with. If the numbers are to be believed, Amazon wishes to have the 75% stake presently held by DHL Express Singapore PTE Ltd in courier and integrated package distribution company Blue Dart, for a whopping USD 2 billion.
Extra edge
This will be a master stroke from Amazon because Blue Dart has a strong network within India. It covers 34,248 domestic locations in India. The Economic Times reveals that Blue Dart has warehouses at 72 locations across the country as well as bonded warehouses at Ahmedabad, Bangalore, Chennai, Delhi, Mumbai, Kolkata and Hyderabad.
It also serves more than 220 countries and territories worldwide through its group company DHL. With Indian ecommerce also preparing to take its products global, Amazon’s stake in Blue Dart will give it yet another edge over other online marketplaces, since it would automatically strengthen Amazon’s international delivery network as well.
Though we are extremely positive about this move, it seems like not everyone is too happy about it. Dipan Mehta, a minority shareholder in DHL says, “I do not think that having Amazon as the ultimate holding company of Blue Dart makes us any better off. In fact it makes us worst off as I said that what DHL brings to the table in terms of brands, systems, global connectivity is not something which Amazon can match.”
Well, we will all have to wait and see what happens with this newly proposed Amazon- Blue Dart alliance. We truly hope it turns out to be a match made in heaven!
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