The news: Amazon is partnering with Bengaluru-based cargo airline Quikjet to launch its air freight service, Amazon Air, in India, per Bloomberg. It began using cargo capacity in a Boeing 737-800 aircraft on Monday and plans to begin making shipments via a second plane on Tuesday.
- Amazon launched its Amazon Air freight service in 2016, in what many saw as a direct threat to UPS and FedEx. The service operates out of small regional airports near Amazon's distribution centers to help it deliver orders within one or two days.
- In India, the service will initially serve Delhi, Mumbai, Hyderabad, and Bengaluru.
- India is the third market where Amazon launched Amazon Air, after the US and the UK.
Why India? We expect the retail market in India to grow 11% to $1.39 trillion this year, per our forecast. That’s strong enough growth to make India the fastest-growing retail market in the world, which we expect it to remain through 2026.
- India is currently the fourth largest retail market in the world, behind the US, China, and Japan. By next year, we expect it will overtake Japan.
- Retail ecommerce sales’ share of that market is growing quickly; we expect the region to account for 8.6% of those sales this year and 9.4% next year. By 2026, retail ecommerce sales will make up 11.2% of retail sales in India.
- “India is really exciting. It’s an indicator of all the potential out there,” Sarah Rhoads, vice president of Amazon Global Air, told Bloomberg.