As ecommerce gains traction in the Indian retail ecosystem, Amazon (which does not have its own delivery system) is reportedly looking to acquire a majority stake in logistics startup Ecom Express for $500 million to $600 million.
According to a Mint report, the ecommerce behemoth intends to establish an in-house logistics division in order to compete with Flipkart. According to the report, Amazon and Ecom Express are in the preliminary stages of discussing a potential co-promotership in Ecom Express. By allowing Warburg Pincus to exit, the ecommerce giant is likely to pick up a 51 percent stake. While Ecom Express is already one of Amazon’s delivery partners, it also serves a variety of other ecommerce companies such as Paytm, Nykaa, and Myntra.