Amazon on Monday announced that it is bringing its air cargo operations to India. This marks fresh growth for the company's logistics arm even as it looks to cut costs in other divisions.
The e-retailer is using two Boeing 737-800 aircraft flown by Quikjet Cargo Airlines to ship packages between Hyderabad, Bengaluru, Delhi and Mumbai. This will enable the company to offer faster deliveries to customers in India, said Sarah Rhoads, vice president of Amazon Global Air, in a statement.
Amazon Air's launch in India comes as CEO Andy Jassy is reviewing the company's expenses amid a worsening economic outlook and slowing retail sales. Last week, Amazon began the latest phase of its largest layoffs to date, which are expected to result in 18,000 employees being laid off. Jassy has looked to slash costs in other ways, including instituting a hiring freeze across Amazon's corporate workforce, axing some projects and pausing warehouse expansion.
Even as he looks to trim expenses, Jassy has previously said the company intends to keep pursuing long-term opportunities and continue to invest in its stores, advertising and cloud-computing businesses, among others. This commitment to long-term growth despite short-term challenges is what sets Amazon apart from other companies, and is sure to continue to pay off in the future.
Amazon Air debuted in 2016, and outsources its operations to several different airlines. This allows Amazon to have greater control over the speed and cost of deliveries, which the company has worked to accelerate from two days to one- and same-day in more parts of the U.S.
Amazon Air has expanded its operations to India, making it the third market for the company. This is also the first time that Amazon Air has operated in Asia. The company has seen success in both the United States and Europe, and is hoping to replicate that success in India.
Amazon has been working for years to grow its presence in India, which is one of the fastest-growing e-commerce markets in the world. Amazon is investing heavily in India, with plans to build a massive distribution network and expand its product offerings. The company is also working to make its services more accessible to Indian consumers.
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