Amazon on air

 Amazon on air

In the news. Amazon India launches Amazon Air, an air-express service catering to the growing need for faster shipments across product categories and consumer segments.

Inside the news. Amazon has invested in Indian cargo carrier Quikjet for carrying its packages exclusively across Delhi, Mumbai, Bengaluru, and Hyderabad. Amazon has been increasingly insourcing most of its logistics volumes, up to the tune of 85%-plus, to its internal logistics arm Amazon Transportation Services. Amazon already has a tie-up with Bluedart Express, which has the largest presence in air cargo in the country. However, investing in its own air service will enable the company to have a better handle on shipment schedules and keep costs under control. Air transport has been the costliest mode of transit for e-commerce companies that often face capacity constraints with airlines. The renewed interest in moving goods via air is coming at a time when e-commerce logistics companies are solving for faster deliveries, especially across metro cities, for certain product categories and segments such as D2C brands. 

One more thing. The air service will enable Amazon to deliver a bulk of its shipments within two days. It launched Amazon Air service in 2016 in the US. It operates a network of more than 110 jets that fly to over 70 locations worldwide. A week ago, third-party e-commerce logistics company Ecom Express also launched its air-express product, ExpressPlus, focused on the needs of D2C brands.