Amazon Transportation Services, US-based e-commerce giant’s logistics arm in India, clocked ₹1,574 crores in revenues for FY18, growing at 60% year-on-year, from previous year’s ₹991 crores, according to regulatory filings sourced from paper.vc.
The company has maintained a constant growth in revenues since it was launched in March 2015. Amazon Transportation Services saw a 60% in revenues for FY17, from previous years ₹619 crores. In FY18, the company also accrued ₹10 crores in other income, mainly from interest on bank loans.
The growth in revenues is attributed to the increasing demand from Amazon’s marketplace business, helping the company grow at a steady rate.
The operations of the company cater to “a single customer in India that is a fellow subsidiary of the holding company, and all assets are located in India.” The filings show that Amazon Transportation was in an agreement of sale of services with Amazon Seller Services, the marketplace business of Amazon in India.
Amazon’s logistics arm increased expenses for FY18 to ₹1,608 crores from ₹1,010 crores in FY17, incurring a loss of ₹24.7 crores. The biggest component of the expenses for the company was the delivery service fee, which almost doubled from ₹594 crores in FY17 to ₹1,015 crores in FY18.
As the company continues to focus its investment on building infrastructure and logistics, in order to cater to its growing business, causing the expenses to balloon up.
Amazon has considerably expanded its third-party delivery network, doubling the number of last-mile Service Partner Network with more than 700 stations in nearly 500 cities. It has also expanded the ‘I Have Space’ programme where it works with neighbourhood stores for last-mile deliveries to 20,000 retail outlets from 17,500 last year.
Recently, Amazon expanded its delivery network in Uttar Pradesh, as it gears up for the festive season sale.
The e-commerce giant has more than 50 fulfilment centres, with a capacity of 20 million cubic feet, more than 1.5 times, compared to last year. It has 30 sort centres spread across 17 states with a processing area close to 1 million square feet.