On Monday, January 23 2023, Amazon announced that it is bringing its air cargo operations to India. This will build towards expanding the company’s logistics division in the country, while also looking to cut costs in other divisions in light of an economic recession looming over the not-so-distant future.

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The company will employ two Boeing 737-800 aircraft flown by Quikjet Cargo Airlines to ship packages between Hyderabad, Bengaluru, Delhi and Mumbai – some of the biggest cities in the country. Sarah Rhoads, Vice President of Amazon Global Air, stated that Amazon Air would allow the company to provide faster deliveries to customers in India. Being the biggest e-commerce platform in the country currently, Amazon clearly wants to focus on customer-centric decisions. 

The reason for the expansion can be attributed to Amazon CEO, Andy Jassy, who conducted a comprehensive review of the company’s expenses due to a deteriorating economic outlook and declining retail sales. However, Jassy has previously indicated that the company will continue to invest in long-term opportunities such as stores, advertising, and cloud computing. The company also recently tested its new Prime Lite Membership in India, which acts as a budget-friendly alternative to the more expensive Amazon Prime subscription.

Amazon Air, which debuted in 2016, outsources operations to various airlines, and it enables Amazon to have more control over the speed and cost of deliveries. This service has been expanded to provide one-day, and same-day deliveries in more areas within the U.S.

India is the third market and the first operation in Asia for Amazon Air. Amazon has been working to increase its presence in India for years, which is predicted to become one of the fastest-growing e-commerce markets in the world owing to the population of the country. Speeding up deliveries throughout the country will ensure the loyalty of a huge customer base, that’s for sure.

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