amazon wants to be its own deliveryman
Last Updated : GMT 06:49:16
Arab Today, arab today
Arab Today, arab today
Last Updated : GMT 06:49:16
Arab Today, arab today

Amazon wants to be its own deliveryman

Arab Today, arab today

Arab Today, arab today Amazon wants to be its own deliveryman

Amazon.com boxes
New York - Arab Today

Amazon is not content just being the “everything store.” Increasingly, it looks like it wants to be its own deliveryman, too.
Its Monday announcement of a new air cargo hub in Kentucky is merely Amazon’s latest foray into building out its own shipping and logistics unit. If successful, the move could ultimately mean lower costs for Amazon — and possibly faster delivery and low prices for consumers. But it could also pit Amazon against package deliverers like FedEx and UPS.
Amazon has long plowed its profits back into its business investments. In order to speed up its delivery, it has invested in opening new distribution centers and leasing fleets of trucks. In May, Amazon leased 40 Boeing jets from Atlas Air Worldwide Holdings and Air Transport Services Group Inc., a fleet it dubbed “Prime Air.”
The moves comes e-commerce continues to outpace retail sales. Amazon said Thursday the number of items it sold in the fourth quarter rose 24 percent compared with a year ago. Its revenue rose 22 percent to $43.74 billion, slightly missing analyst expectations.
Meanwhile, profit rose 36 percent to $749 million, or $1.54 per share, ahead of expectations.
Next step 
On Monday, Amazon took the next step, announcing plans to build a worldwide air cargo hub at a northern Kentucky airport about 13 miles southwest of Cincinnati. The nearly $1.5 billion investment is expected to create 2,700 jobs.
It is an auspicious location, since UPS has a big air hub in Louisville and DHL has an international shipping hub at Cincinnati/Northern Kentucky International Airport. Amazon has long batted down rumors that it plans to start its own package delivery service, saying it is just trying to speed up deliveries and lower costs. The company insists it will continue working with the US Post Office, UPS, FedEx and other carriers to deliver packages.
“It is not a big surprise,” Cathy Roberson, founder of consulting firm Logistics Trends & Insights, said of Amazon’s Kentucky announcement. “By utilizing that location they can reach anywhere in the US in two days.”
E-commerce explosion 
If Amazon succeeds in building out its delivery infrastructure, it could ultimately reduce package volume for companies like FedEx and UPS, Roberson said. On the other hand, ecommerce volume is growing so fast there may be room for everyone, she said.
For example, UPS reported Monday that 55 percent of its fourth-quarter deliveries — and 63 percent of those in December — were directly to consumers, setting records in both cases.
The rub 
It is no sure bet that Amazon will succeed in the highly competitive and complex delivery space.
“It is hard to scale up, to have a network as built out and mature as FedEx, UPS or DHL,” Roberson said. “Amazon is still not mature.” To really go up against that big three, she said, Amazon would have to invest “an awful lot of money in networks and more facilities” — at least double what it is already spending, she estimates.
Still, Amazon has a history of developing services for its own use and then offering them to other customers. It built Amazon Web Services, its cloud computing business, for its own purposes; that service now generates annual revenue of more than $12 billion.
“You could see a scenario in the future where they perfected their delivery network and become a carrier for other retailers,” said Rob Convey, CEO of Convey, a company specializing in improving retailer shipment delivery.

Source: Arab News

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

amazon wants to be its own deliveryman amazon wants to be its own deliveryman

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

amazon wants to be its own deliveryman amazon wants to be its own deliveryman

 



GMT 20:28 2017 Monday ,13 February

EgyptAir to receive second next-generation Boeing

GMT 05:13 2017 Thursday ,16 February

Central bankers take up arms against protectionism

GMT 12:53 2017 Friday ,13 October

S&P warns of Catalan recession if crisis drags

GMT 13:37 2017 Thursday ,16 March

Smith leads Australia's revival in Ranchi test

GMT 18:39 2017 Tuesday ,11 April

Comedian John Bishop returns to Dubai

GMT 21:08 2017 Tuesday ,31 January

Motorcity honoured as ‘Distributor Champion’

GMT 00:14 2017 Tuesday ,28 February

Mohammad receives Pakistani Chief of Army Staff

GMT 23:37 2017 Tuesday ,15 August

Civilians Killed in Deadly Blast in Afghanistan

GMT 08:27 2011 Tuesday ,07 June

3 women charged with robbing vets\' graves

GMT 20:01 2014 Wednesday ,10 December

27 hard questions you need to ask

GMT 16:44 2017 Monday ,25 December

DFM welcomes listing of AWTAD on "Second Market"

GMT 23:23 2017 Sunday ,24 December

Abdullah bin Zayed meets Canada's Minister of Defence

GMT 18:44 2016 Sunday ,04 September

Israel Strikes Northern Gaza Strip

GMT 18:17 2012 Friday ,18 May

Carmen Suleiman hits the books

GMT 09:32 2017 Wednesday ,20 December

Gayeon Lee appoints Dyelog

GMT 06:39 2014 Monday ,01 September

May 21 - June 20
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday