Amazon Plans to Involve Local Grocery Stores in Its Network: Prasad

US e-commerce giant Amazon's Indian arm is working on a business model to involve local grocery stores in its network so as to help working people collect their orders from these locations at their convenience.

"Amazon shared with me that they want to involve grocery stores in their business. They want to start delivery of products through grocery stores as it will help grocery stores have more footfall of potential customers," Telecom Minister Ravi Shankar Prasad told reporters after meeting with Amazon senior officials.

The model is aimed at providing convenience to working people who are not home during the day time when their orders are delivered. Amazon is looking to have partnership with the nearest grocery store where shipment can be left and customer can collect the product as per his convenience.

Amazon India Managing Director Amit Agarwal and Amazon Vice President for International Public Policy Monique Meche met the minister on Tuesday.

"They want to contribute to Digital India programme. I Appreciated them and promised them support," Prasad said.

Grocery stores have been highly impacted due to emergence of shopping malls, and a rise in online shopping, especially in Tier 1 and 2 cities.

"We are continually evaluating new ways to enable fast and reliable delivery of a vast selection of goods at low prices to our customers," Amazon India spokesperson said.

(Also See: Indian E-Commerce Industry to Hit $20 Billion Next Year: Report)

The minister said that Amazon already has an agreement with India Post and they are working to further expand the scope of services.

Amazon officials also shared with minister that they have plans to set up data centre in the country.

"They said that they want to set up data centre in India which is again a welcome step," Prasad said.

Amazon India spokesperson said that the company is evaluating the setting up of a Data Centre in India and "will share more details as and when we are ready".

The minister also met senior officials of Japan Bank for International Cooperation including Senior Managing Director Tadashi Maeda.

"This was my second meeting with Japan Bank for International Cooperation. They are consortium of banks and have expressed in making investment in India. Soon they will share with me their concrete plans," Prasad said.

The minister said that JBIC has interest in the entire infrastructure sector including electronics manufacturing, shipping and smart cities.