Amazon India to Merge Logistics and Marketplace Arms
Amazon India is set to consolidate its core e-commerce operations by merging its logistics subsidiary Amazon Transport Services (ATS) with its primary marketplace unit Amazon Seller Services, according to documents reviewed by sources close to the development.
The internal restructuring move was approved by the board and aims to streamline operations and enhance synergy between the two business arms. A meeting with the unsecured creditors of Amazon Transport Services is scheduled for April 14, indicating the final stages of regulatory and stakeholder procedures. As per the merger blueprint, Amazon Seller Services will act as the transferee entity, while Amazon Transport Services will be the transferor. PricewaterhouseCoopers (PwC), appointed as the registered valuer, will determine the share exchange ratio. Launched in 2013, Amazon Seller Services serves as the backbone of Amazon India’s marketplace, providing a platform for third-party sellers across the country.
Amazon Transport Services was later introduced in 2015 to handle logistics, supply chain operations, and last-mile delivery for the rapidly growing e-commerce market. Both entities have so far operated independently under Amazon Corporate Holdings Pvt. Ltd., which in turn is a subsidiary of the global parent, Amazon.com, Inc., based in the United States. Amazon has not issued an official comment on the development as of publishing time, despite queries sent earlier in March. The merger follows Amazon India’s recent decision to wind down its refurbished goods platform, Renewed, for third-party sellers. Industry observers view the consolidation as part of a broader rationalisation strategy aimed at improving efficiency amid shifting market dynamics.
While financial terms and timeline of the merger’s completion are yet to be disclosed, insiders suggest the move is aligned with Amazon’s long-term plan to unify business functions and reduce internal redundancies within its India operations.
