Amazon Gets Project Armada to Indian Market The project that was earlier introduced in the US market helped entrepreneurs earn upto USD 300,000 per month

By Vanita D'souza

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Jonathan Weiss / Shutterstock.com

Amazon is betting high on the Indian market. Soon after investing INR 2700 crore in its India's arm, the e-commerce giant is now introducing Project Armada to the domestic market.

According to an Economic Times report, the project will allow entrepreneurs to manage a fleet of delivery trucks. Earlier this year, the project was introduced in the US market, which helped entrepreneurs to make USD 300,000 per year with about 40 such trucks.

While on the other side, the Amazon would lease these trucks at discounted prices and it would sport the company's logo. Additionally, it would also incur the cost of fuel, insurance, etc.

The report cited sources aware of the development saying that Amazon has already started the pilot project in Delhi and is keen to work with logistics companies that will help them lease vehicles to entrepreneur.

The American Way

According to a regulatory filing, Amazon acknowledged the risk associated with relying on external partners like FedEx and UPS while it said if it is unable to negotiate acceptable terms with these companies or they experience performance problems or other difficulties, it could negatively impact the giant's operating results and customer experience.

Additionally, the report also noted that shipping costs, which includes sorting, delivery centre and transportation expenses, zoomed from USD 11.5 billion in 2015 to USD 21.7 billion in 2017. And these costs are predicted to go high.

While announcing the Project Armada in the US market, Dave Clark, Senior Vice President, Amazon said, "We have great partners in our traditional carriers and it's exciting to continue to see the logistics industry grow."

Having said, that Dave also added that the customer demand is higher than ever and Amazon needs to build more capacity.

"As we evaluated how to support our growth, we went back to our roots to share the opportunity with small-and-medium-sized businesses. We are going to empower new, small businesses to form in order to take advantage of the growing opportunity in e-commerce package delivery," he pointed out.

The Indian-Edge

According to Amazon's CEO Jeff Bezos – India market is full of opportunities as entrepreneur sees potential in the local economy.

Amazon, by far, as pumped in roughly around USD 4 billion in the Indian market. The giant has heavily invested in India to build infrastructure, technology, warehousing, logistics, along with discounting product and increasing the reach of Amazon Prime.

To improve its hyperlocal delivery game in India, earlier last month in September, Amazon along with Samara Capital acquired Aditya Birla Group-owned More retail chain for INR 42 billion.

These moves are directed to help Amazon to hedge on the deal of the year – Flipkart's acquisition by Walmart.

However, who will the winner in the great Indian e-commerce war? Well, the customer knows it better.

Vanita D'souza

Former Senior Correspondent, Entrepreneur India

I am a Mumbai-based journalist and have worked with media companies like The Dollar Business Magazine, Business Standard, etc.While on the other side, I am an avid reader who is a travel freak and has accepted foodism as my religion.

Business News

JPMorgan Shuts Down Internal Message Board Comments After Employees React to Return-to-Office Mandate

Employees were given the option to leave comments about the RTO mandate with their first and last names on display — and they did not hold back.

Business Ideas

70 Small Business Ideas to Start in 2025

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2025.

News and Trends

Recur Club Announces Credit Offerings for Startups Beyond Series A and SMEs

In FY 24–25, the platform also plans to deploy an additional INR 2000 crores through its Recur Swift program for startups.

News and Trends

NeoSapien Secures INR 80 Lakhs on Shark Tank India 4 for AI Wearable

Founded in 2024 by Dhananjay Yadav and Aryan Yadav, NeoSapien aims to integrate AI into daily life through its wearable technology

News and Trends

Accel Fuels Sarla Aviation's Flying Taxi Ambitions with USD 10 Mn Investment

Angel investors, including Binny Bansal (Flipkart co-founder), Nikhil Kamath (Zerodha co-founder), and Sriharsha Majety (Swiggy co-founder), also participated in the round.

News and Trends

Eccentric Eyes Global Expansion with USD 5 Mn Pre-Series A Funding

The round was co-led by Exfinity Venture Partners and Arkam Ventures, marking the company's first institutional funding since its inception in 2012.