Amazon India to use mom-and-pop shops as delivery points

Global online retailer Amazon has partnered with more than 20,000 local “kirana” stores in India to serve as delivery points.

The move is part of the firm’s “I Have Space” program to build relationships with such stores in 350 Tier 1, 2 and 3 cities within the territory. It reflects competitor Flipkart’s recent investment in its ShadowFax network of neighborhood stores.

“We believe the recent partnerships are expected to drive Amazon’s momentum across the country’s shoppers and mom-and-pop shops,” read a report by stock research firm Zacks. “Consequently, this will bolster the company’s presence in the retail space of India, which holds immense prospects.”

Local stores stand to benefit from the initiative from the extra income they may receive as Amazon’s delivery partners.

The Zacks report notes that Amazon’s stocks have returned just 14.2 percent over the past year, well below the industry’s rally of 22.4 percent.