When most people think of Amazon India, images of huge warehouses, delivery vans, and rapid e-commerce shipments come to mind. What is rarely seen, however, is the network behind the network—a vast, innovative system quietly reshaping last-mile delivery across the country. At the heart of this transformation is Amazon India’s “I HAVE SPACE” (IHS) program, a pioneering initiative that has partnered with over 28,000 local kirana stores to reach every nook and corner of India. (I HAVE SPACE)
The Challenge: Delivering Across India (I HAVE SPACE)
India’s logistics landscape is notoriously complex. Unlike many countries where wide roads and well-planned urban layouts make delivery straightforward, India presents multiple challenges:
- Narrow lanes in residential neighborhoods that cannot accommodate large trucks.
- Small towns and villages where conventional delivery networks often do not operate.
- Unpredictable traffic and infrastructure issues, making timely delivery difficult.
For years, these hurdles made last-mile delivery the Achilles’ heel for e-commerce companies. Packages often failed to reach customers, leading to frustration, high operational costs, and lost revenue. Most founders would see these as insurmountable problems—but Amazon saw an opportunity. (I HAVE SPACE)
The Solution: Leveraging Local Businesses (I HAVE SPACE)
In 2015, Amazon India launched the “I HAVE SPACE” program, a bold experiment in decentralized logistics. The concept was deceptively simple: use local kirana stores, pharmacies, and small neighborhood shops as mini Amazon hubs. Instead of trying to push large trucks into narrow lanes, Amazon would bring packages closer to the community and let store owners handle the last mile.
The genius of IHS lies in its simplicity and scalability:
- Pre-Sorted Packages at Local Stores
Packages destined for a particular neighborhood are dropped off at a nearby store. These stores act as temporary hubs where packages are sorted and prepared for local delivery. - Micro-Delivery by Store Owners
Store owners then deliver the packages within a 2–4 km radius, solving the notorious last-mile problem. This ensures faster, reliable delivery while avoiding traffic congestion and logistical bottlenecks. - Empowering Local Entrepreneurs
Store owners earn extra income by delivering 30–40 packages per day, attracting more foot traffic to their stores and even scaling up with motorcycles or other transport. For many, this becomes a new revenue stream and an opportunity to grow their business.
Scale and Reach (I HAVE SPACE)
The IHS program is not just a pilot—it has grown into a vast, scalable network:
- 28,000+ partner stores across 420 towns and cities.
- Covering urban centers, small towns, and even remote areas that are traditionally hard to reach.
- Innovative ideas like floating IHS stores on Dal Lake to serve houseboats in Srinagar highlight the program’s creativity and adaptability.
This network allows Amazon to avoid the massive costs of warehouses while ensuring that deliveries reach customers even in areas where conventional logistics would fail.
Real Stories: Humanizing the Program (I HAVE SPACE)
One of the most compelling aspects of the IHS program is the human stories behind it. It’s not just a logistics strategy—it’s empowering individuals across India.
- Vishal Sahani, despite physical challenges, became a key delivery partner in his area, demonstrating the inclusivity and opportunity the program provides.
- Noorjahan from Assam earned enough from IHS deliveries to buy her first motorcycle, transforming her small business and increasing her independence.
- Deepali and Amol in Maharashtra manage family responsibilities and their store business while successfully executing deliveries, proving that the program works in real-life, complex environments.
These stories highlight that IHS is not just about operational efficiency—it’s a social and economic enabler for local communities.
Business Advantages: Why Amazon Did It (I HAVE SPACE)
From a business perspective, the benefits of IHS are multi-fold:
- Cost Efficiency
By leveraging local stores, Amazon avoids investing heavily in warehouses and large fleets of delivery trucks. The costs of storage, maintenance, and traffic management are significantly reduced. - Scalable and Flexible Logistics
The model allows rapid expansion without being constrained by infrastructure. Amazon can add new stores as partners and reach more neighborhoods without building new facilities. - Customer Satisfaction
Faster, reliable deliveries improve customer experience. Packages delivered within 2–4 km of the final destination reduce the chances of delays or failed attempts. - Community Engagement
Kirana stores become micro hubs for Amazon, creating win-win relationships. Customers receive packages reliably, store owners earn extra income, and Amazon expands its reach efficiently. - Competitive Moat
While other e-commerce companies struggle with last-mile logistics, Amazon has built a network that is difficult to replicate. By embedding itself into local communities, Amazon strengthens its market dominance and competitive advantage.
Innovation at the Edge
The IHS program is also a playground for creative solutions:
- Floating Stores on Dal Lake: Serving houseboats in Srinagar, Amazon adapted to the local geography in a way that traditional logistics companies could not.
- Micro-Delivery in Dense Urban Areas: In crowded cities, bikes and even bicycles are used to navigate narrow lanes, ensuring timely delivery.
- Localized Problem Solving: Stores often manage multiple packages for neighbors, combining efficiency with community trust.
This willingness to experiment with unconventional methods has allowed Amazon to turn constraints into advantages, something few companies manage to do at scale.
Lessons for Businesses and Founders
Amazon’s IHS program is more than a delivery solution—it’s a case study in innovation, adaptability, and community-driven growth. Key takeaways include:
- Leverage Local Resources
Sometimes, the solution to complex problems lies not in building more infrastructure, but working with existing community assets. - Focus on the Last Mile
No matter how advanced your system is, the last mile determines success or failure. Amazon’s focus on hyper-local delivery has set a benchmark. - Empower Stakeholders
By turning local store owners into partners, Amazon creates shared incentives, ensuring high engagement and operational efficiency. - Innovation Beyond the Obvious
Floating stores, small-town micro-hubs, and neighborhood partnerships show that thinking outside conventional logistics models can unlock significant advantages. - Solve Real Problems, Don’t Wait for Perfection
Infrastructure challenges often stop companies in their tracks. Amazon demonstrated that creative workarounds, community partnerships, and iterative experimentation can solve problems that seem impossible.
Conclusion
Amazon India’s “I HAVE SPACE” program is a testament to how innovation doesn’t always require massive capital expenditure. By leveraging local kirana stores, Amazon has redefined last-mile delivery, created economic opportunities for thousands of small business owners, and strengthened its position in the Indian market.
It’s a reminder to businesses everywhere: while most companies focus on scaling through infrastructure, sometimes the most effective strategy is to scale through people and communities.
The shop near your home, once just a place to buy groceries, is now part of a powerful delivery ecosystem—one that silently powers Amazon’s logistics, empowers local entrepreneurs, and reaches customers where others can’t. Amazon didn’t just solve a logistics problem—they hijacked the last mile, and in doing so, rewrote the rules of e-commerce in India.
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