Amazon announced the launch of Amazon Air - a dedicated air cargo service in India. This is to aid with the speed and expansion of package delivery in the country, which has become a key market for Amazon.
Amazon Executives Shared How the Move Will Allow Them to Cater to Customer Needs
This move is part of Amazon's goal to expand and speed up the delivery of package time in India, one of their key markets. The Washington-based company has invested in the Indian cargo company Quickjet, which will exclusively transport Amazon packages across India's four major cities.
According to the story by Giz China, Amazon executives stated the move would help them meet customer demands as the e-commerce market grows rapidly. As part of this initiative, Amazon has invested in Quickjet, an Indian freight company.
Quickjet Will Provide the Delivery Services Spanning Through Four Major India Cities
As of press time, Quickjet will provide delivery services to four major cities in India. Although details surrounding the size of the investment remain undisclosed, Vice President of Amazon Global Air, Sarah Rhoads, stated the move would help Amazon have greater control over their costs and flight schedules.
Amazon currently operates a 110-jet network across 70 locations around the world. With the launch of its air cargo service, there will now be a dedicated freight carrier for Amazon operated by Quickjet.
Amazon Air has Already Been Functioning in the US and Europe
Before Tuesday's launch, Amazon Air had already been actively functioning in two other regions, the United States and Europe. India is the third region to participate in the Amazon Air service. Amazon Air responds to Walmart's Flipkart, India's biggest online store.
Amazon's success with its Air service will determine how many more jets the company invests in for expansion. With this new service, Amazon hopes to become more competitive in India's online delivery market, further explained in a post by Amazon.
Advantages of the New Amazon Air When It Comes to the Company's Delivery Time
Using a dedicated cargo service will allow Amazon to control their costs and flight schedules better to reduce delivery time and meet their pledges of providing two-day-or-less delivery.
Quickjet, a Bengaluru-based freight carrier, will manage the freight operations for Amazon's new air cargo service across four cities in India - Mumbai, Delhi, Bengaluru, and Hyderabad, per Tech Crunch.
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Amazon Air India Expansion Could be Strategic for the Company in Helping It Compete Against Walmart's Flipkart
Amazon Air's expansion in India has strategic value for the company, as it may help them compete against their main rival, Walmart's Flipkart. Amazon may expand its fleets, depending on the success of the two India flights they are launching.
Amazon Air will give Amazon tighter control over costs and flight schedules. It allows for more transparency with shipment costs and efficient use of assets. The goal for Amazon is for the majority of shipments to be delivered in two days or less.
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