As the on-going COVID-19 pandemic has proven to be a boon for Indian e-commerce companies, it seems that Amazon India is strengthening its operations to cater growing market. The e-commerce giant has reportedly announced that it added 10 new warehouses ahead of its upcoming ’Amazon Prime Day’ sale.
With this expansion, Amazon India will have more than 60 warehouses across 15 Indian states with an area equivalent to over 100 football fields. The warehouses will be set up in Mumbai, Delhi, Patna, Bengaluru, Kolkata, Lucknow, Hyderabad, Ahmedabad, Chennai, and Ludhiana.
Sources cite that all these warehouses will be equipped with the highly automated pick, pack, and shipping processes to facilitate timely and safe processing of orders.
Apparently, India is one of the important markets for the retail giant. However, the company has been facing regulatory hurdles and backlash from local traders over allegations of discounts.
Meanwhile, Amazon’s local payment arm Amazon Pay has collaborated with Acko General Insurance to provide motorbike and car insurance to customers. With this move, India has become the first country for Amazon where it offers insurance services.
According to sources familiar with the knowledge of the matter, the insurance is currently available on Amazon’s payment app and mobile website. Amazon Prime subscribers will avail additional benefits and more discounts.
Speaking on which, Vikas Bansal, Head and Director of Financial Services at Amazon Pay India, said the company would offer cost-efficient and easy to buy financial services to customers.
For Acko, which mainly caters to bike and car insurance segment, the collaboration is anticipated to reduce and scale dealership commissions, said Varun Dua, CEO of Acko General Insurance.
Amazon’s insurance service will compete with regional rivals such as insurance aggregator Policybazaar and digital payments company Paytm.