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Business News/ Companies / News/  Amazon opens logistics hub in Bengaluru

BENGALURU : Amazon India has launched a new delivery station in Bengaluru, that will enable the e-commerce major to expand its last-mile delivery network and ensure faster deliveries across the city ahead of the upcoming festival season.

Spread across nearly 30,000 sq ft, this is its largest delivery station in Karnataka out of the existing network of 130 Amazon-owned and partner delivery stations. Investments in delivery stations enable seamless and faster last-mile deliveries of orders to customers in the region, and create local jobs in the city, the company said.

In-city delivery stations and fulfillment centres are rapidly growing, led by Amazon India and Flipkart, as e-commerce companies look at faster last-mile deliveries on the back of growing customer demand.

“We believe customers, no matter where they are located, value fast and reliable delivery. In line with our vision of making e-commerce a part of everyday life, and transforming how India buys and sells we have expanded our last mile delivery network in the state and also opened a new large delivery station spread across 30,000 sq ft of space in Bengaluru," said Prakash Rochlani, director, Amazon Logistics.

Amazon said it has also invested in the overall growth of the delivery network in the state to penetrate further into smaller towns across Karnataka like Athani, Kemvavi, Rathihalli and Kinnigoli among others.

The company delivers to over 950 pin codes in the state, with a significant number of customers now being able to enjoy one-day and two-delivery promises.

With this expansion, Amazon India now has more than 130 delivery stations including those operated by its partners, and more than 2600 ‘I Have Space’ partners across the state.

Urban logistics spaces or in-city delivery hubs are expected to surpass 7 million sq ft by 2022, according to a recent report by property advisory JLL India. The increasing trend of faster goods distribution and e-commerce penetration nationwide is expected to push the demand further.

“Urban logistics will play a more front-and-centre role in the metropolitan economies of India as consumers become more tethered to the convenience, transparency and hygiene benefits of online purchasing throughout and post-covid. The surge in e-commerce has led to increased storage space and logistic delivery capabilities, thereby giving owners and developers a clear opportunity to capitalize on the demand," said Radha Dhir, CEO and country head-India, JLL.

Logistics operator LOGOS has leased a million square feet of space in its new warehouse facility to Amazon India, at the former’s Devanahalli Industrial and Logistics Park in north Bengaluru in one of the largest warehouse lease transactions in the country, Mint reported on Friday.

The 20-year-long lease tenure amounts to a rental outflow of over $100 million. This is also Amazon’s largest fulfillment center (FC) in Bengaluru. The company has a total of five FCs spread across 6.5 million cubic feet to support over 42,000 sellers and sort centers with sortation area of more than 300,000 sq. ft.

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Updated: 21 Sep 2021, 01:22 AM IST
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