Amazon has launched Amazon Air, its dedicated air cargo fleet, in India as the e-commerce giant expands its logistics infrastructure in its key overseas market where it has committed more than $6.5 billion.
The retailer has partnered with Bengaluru-based cargo airline Quikjet to launch its first air freight service in the country, which could help the company speed up delivery. Amazon, which uses the Boeing 737-800 for the service, said it will initially use Amazon Air to deliver goods to Delhi, Mumbai, Hyderabad and Bengaluru. An Amazon executive described the launch of Amazon Air as a “huge step forward for the airline industry,” without explaining how.
Amazon launched Air in the US in 2016 with more than three dozen Boeing cargo planes. The program has also been tested briefly in the UK. India is the third market where Amazon has launched its freight service. The company said its Air fleet includes more than 110 flights to 70 destinations worldwide and it has invested “hundreds of millions of dollars” in its air logistics capabilities.
(Amazon calls its airfreight service Amazon Air, but confusingly still uses the Prime Air nickname on the plane, even though the latter unit now looks into drone deliveries.)
The move follows Amazon opening its transportation and logistics network to third-party sellers, businesses and direct-to-consumer brands in the country late last year.
“Amazon India uses its own services for the delivery of about 80-85% of orders and has opened up its delivery department to other sellers. Delivery itself is a business that can achieve massive scale in India. So it makes sense for them to start this in India,” said Satish Meena, an independent analyst who follows the e-commerce sector in the country.
India is one of Amazon’s most important overseas markets. But the company is lagging behind its main rival, Walmart-backed Flipkart, in the country. Amazon is struggling to penetrate smaller cities and towns in India, Sanford C. Bernstein analysts said last year.
The company also closed at least three business units in India last year: wholesale Amazon Distribution, food delivery Amazon Food and learning platform Academy.
