Amazon India has launched a dedicated logistics platform to on-board third-party logistics (3PL) companies and staffing agencies to support its last-mile delivery across India
We see this development having the following potential implication for the logistics sector:
Increased competition between 3PL companies especially on common routes which are well serviced.
Reduce the overall logistics cost as the transport could be split into multiple parts, with each part being serviced by the most efficient player in that segment.
Leverage technology to track the parcel despite multiple logistics players' involvement.
Amazon currently outsources some of the deliveries to 3PL players including Blue Dart. With the new technology enabled platform, we believe that the business outsourced to Blue Dart could get negatively impacted as it will now have to complete against smaller and nimble regional logistics providers. Further, it may also impact the pricing power for Blue Dart as it currently commands premium over
peers for its reach and reliability.
