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” programme 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 neighbourhood 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 per cent over the past year, well below the industry’s rally of 22.4 per cent.