Amazon to Fly
It’s official now. Amazon has completed a deal to run its own air freight delivery operation flying 20 used Boeing 767 cargo jets. On Thursday, September 29th, a fleet of Amazon vans rolled up in the Los Angeles International Airport and was filled with almost 150 packages per truck. This was the first step in the company’s entry into the logistics market.
Being one of the world’s leading online retailers, Amazon has been spending a hefty sum of money for logistics. As of 2015, Amazon has spent 11.5 billion dollars on shipping alone. Getting their own logistics arm would help the company save more and sell more, with a delivery system of their own.
If rumors are true, Amazon is planning to buy their own 767 cargo jets for their delivery processes.This would certainly be a blow to their current logistics counterparts – UPS and FedEx. Today, 44% of the U.S. population is under 20 miles of an Amazon facility and sales could increase with the development of their own transportation facility. In addition, the Amazon Prime and Flex programs also add to this already shining plan of the online giants.
It’s always good to see our clients shine. With the pace at which Amazon is growing, as stated earlier, Amazon is all set to give FedEx and UPS a run for their money.