Amazon Launches Freight Service Air In India – Amazon has established a dedicated air cargo fleet in India, named Amazon Air, as part of its efforts to expand and strengthen its logistics network in the country. This move is significant as India is an important overseas market for Amazon, and the company has invested over $6.5 billion in the region. The launch of Amazon Air in India will allow the e-commerce giant to have more control over its delivery process and improve efficiency, which will ultimately benefit customers by providing faster and more reliable delivery services.
Amazon has teamed up with Quikjet, a Bengaluru-based cargo airline, to launch its first air freight service in India. The service will use the Boeing 737-800 and initially deliver goods to cities such as Delhi, Mumbai, Hyderabad and Bengaluru. An Amazon executive stated that the launch of Amazon Air represents a significant advancement for the aviation industry, but did not elaborate further. Amazon introduced its Air freight service in the United States in 2016 with over three dozen Boeing freighter aircrafts.
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It also experimented with the service in the United Kingdom. India is the third market where Amazon has rolled out the program. The company states that it now has a fleet of over 110 flights serving 70 destinations globally and has invested substantial funds in developing its air logistics capabilities. The move follows Amazon opening up its transportation and logistics network to third-party merchants, businesses and direct-to-consumer brands in the country late last year.
“Amazon India uses its own services for delivery of around 80-85% of orders and has opened up its delivery arm to other sellers. Delivery itself is a business which can achieve massive scale in India. So it makes sense for them to start this in India,” said Satish Meena, an independent analyst who tracks the e-commerce sector in the country.
India is one of the key overseas markets for Amazon. But the company is lagging behind its chief rival, Walmart-backed Flipkart, in the country. Amazon has struggled to make inroads in smaller cities and towns in India, analysts at Sanford C. Bernstein said last year. The company also shut down at least three business units – wholesale distribution Amazon Distribution, food delivery Amazon Food and learning platform Academy — in India last year.