Amazon pours funds in India logistics arm, Prime Air may soon come to India

Early this month, Amazon – the US based e-commerce giant with a strong presence in India – poured in an additional INR 400 crore in its local logistics arm Amazon Transportation Services, according to business intelligence firm Tofler. The money came from Amazon’s business entities in Singapore and Mauritius. Back in June 2022, Amazon Transportation had received around Rs 375 crore in funding.

Amazon is also planning to launch its own air cargo fleet Prime Air in India to increase its logistics presence in the country, marking the launch of Amazon’s dedicated air cargo operations. Currently, Prime Air exclusively operates in United States and Europe. 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.

Prime Air in India will be operated with two Boeing 737-800s, by Bengaluru-based cargo airline QuickJet, a joint venture between AFL and the Ireland-based ASL Aviation Group. 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.

Amazon also recently announced their plans to expand their seller base in India by almost 2 million, and taking its user base to 500 million. It also opened access to its logistics business for other e-commerce companies offering third-party logistics services, such as Delivery, Ecom Express, and Xpressbees.

Amazon Transportation reported total revenue of INR 4,581 crore in FY22, a 12.6% jump from the year-ago period. Its total revenues were INR 4,068 crore in FY21.

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