Coming soon! Your Amazon delivery via Prime Air; e-commerce giant invests Rs 400 crore in logistics arm

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Coming soon! Your Amazon delivery via Prime Air; e-commerce giant invests Rs 400 crore in logistics arm (Image source: Amazon)

Photo : ET Now Digital

Amazon, the global e-commerce giant, is planning to launch its own air cargo fleet, Prime Air, in India to increase its logistics presence in the country. This will be the only market outside of the United States and Europe where Amazon will be launching dedicated air cargo operations. The company first launched Prime Air in the US in 2016.

According to reports, Amazon Prime Air is set to launch by the end of January and will exclusively carry packages for the company, enabling it to create its own overnight delivery network in the fast-growing Indian market. The airline will be operated by Bengaluru-based cargo airline QuickJet, a joint venture between AFL and the Ireland-based ASL Aviation Group.

Amazon Prime Air will begin operations with two Boeing 737-800s and will increase the number of freighters to six by the end of this year. Prime Air currently operates a fleet of 91 aircraft globally, which includes Boeing 737s, 767s, and ATRs. In Europe, the ASL group manages Amazon’s cargo operations.

QuickJet was founded in 2017 by Tata Capital, IL&FS, and IDFC in 2007. However, operations were halted in 2013 due to high oil prices. Guzder and ASL later helped revive the airline.

In addition to this investment, Amazon has invested Rs 400 crore in Amazon Transportation Services, as reported by the Economic Times. This latest investment, made on January 6, follows an infusion of funds worth Rs 375 crore in June 2022 from Amazon’s Singapore and Mauritius entities.

Amazon already has over a million sellers in India and aims to add another two million, taking its user base to 500 million. According to an earlier Economic Times report, Amazon Transportation Services opened its logistics business to other e-commerce companies, offering third-party logistics services such as Delivery, Ecom Express, and Xpressbees.

In FY22, Amazon Transportation Services’ revenues were Rs 4,581 crore, an increase of 12% from Rs 4,068 crore in FY21. However, net losses during the period increased by 38% to Rs 95 crore in FY22 from Rs 68.70 crore in FY21

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