Ecommerce giant Amazon is going to buy Blue Dart that is specialized for time bounded delivery in India. Amazon is in talk to acquire majority share of Blue Dart. This is going to be an end of delivery anxiety. Amazon entered India in the end of 2012 but its performance has not been as eye catching as it is in Europe and America.
Why Amazon is going to buy Blue Dart:
There are many reasons behind this action of Amazon. Especially in India they are in bull fight with another Indian origin ecommerce giant Flipkart.com. The fight became intensified when Snapdeal entered the market with huge funding.
Amzon is lagging behind when the point of delivery partner/ logistic partner comes. Flipkart.com already has their own delivery channel named Ekart that was bought by the Flipkart to strengthen their delivery and to gain more customer satisfaction.
On the other hand, Jebong.com created their own delivery channel named GoJavas recently. Though Snapdeal has not been buying any logistic company, but has special MoU with India Post and other third party logistic companies.
But Amazon has not anything like that and depends on the third party delivery partners for delivering goods and merchandises across the India. That’s why buying Blue Dart can be a hand strengthening step in India. Blue Dart is one of the biggest private logistic companies with maximum number of PIN (Postal Identification Number) services after India Post, in India.
Acquiring Blue Dart & Business in India:
Acquiring Blue Dart by Amazon is a strategic move to build its base in India and facilitate owned delivery network across India.
Though Amazon claimed that the talking was in preliminary stages, market analysts think that Amazon has closed the deal already and going to buy Blue Dart. It is not clear that whether Amazon will buy the Blue Dart in full or buy majority stakes.
In India Blue Dart is in joint venture with DHL and Amazon may buy that also. DHL is well known for its speedy custom clearance and wide spread network in Europe and South Asian countries.
Instead of buying Blue Dart in whole, Amazon may buy the stake of Blue Dart in India because its one and only target is to fill the gap of ecommerce logistics in India right now.
After infusing 2 billion USD in India, Amazon is desperately looking to expand its business and capacity both in India. Eyeing on Blue Dart shows that they are in no intention of leaving India! The move of buying Blue Dart is the sign that resembles Amazon’s strategies.