ONLINE retail giant Amazon is becoming a player in the logistics and shipping industry, say analysts as its air cargo fleet grows to 50 planes serving new regional hubs, including a US$1.5 billion base soon to open in northern Kentucky.
Despite analysts warnings, American courier giants like FedEx see no threat and remain unimpressed. 'We honestly don't see a world where Amazon would be a competitor to FedEx. There is no sensible way to compare them,' said FedEx vice president Patrick Fitzgerald.
But according to Wolfe Research, the e-commerce giant Amazon is now handling its own shipping for 26 per cent of online orders, reports CNBC TV news.
Said Morgan Stanley analyst Ravi Shanker: 'We think that Amazon will be a top logistics provider, whether it's in trucking or in air. The question is how quickly they will ramp up the operation.'
Said Northwestern University operations management lecturer Tarek Abdallah: 'By gaining more control over their supply chain, they can make sure to provide a better service. If a customer does not receive his package on time, they're not going to blame UPS or FedEx, they're going to blame Amazon.'
Said Ontario International Airport deputy director Atif Elkad: 'We have about eight flights a day on Amazon's Prime Air. I know when they started here a couple of years ago it was maybe three or four flights a day and it has steadily increased.'
But FedEx's Mr Fitzgerald said: 'In a given week, Amazon flies 671 flights. The FedEx number of flights per week is closer to 13,000.'
WORLD SHIPPING
Despite analysts warnings, American courier giants like FedEx see no threat and remain unimpressed. 'We honestly don't see a world where Amazon would be a competitor to FedEx. There is no sensible way to compare them,' said FedEx vice president Patrick Fitzgerald.
But according to Wolfe Research, the e-commerce giant Amazon is now handling its own shipping for 26 per cent of online orders, reports CNBC TV news.
Said Morgan Stanley analyst Ravi Shanker: 'We think that Amazon will be a top logistics provider, whether it's in trucking or in air. The question is how quickly they will ramp up the operation.'
Said Northwestern University operations management lecturer Tarek Abdallah: 'By gaining more control over their supply chain, they can make sure to provide a better service. If a customer does not receive his package on time, they're not going to blame UPS or FedEx, they're going to blame Amazon.'
Said Ontario International Airport deputy director Atif Elkad: 'We have about eight flights a day on Amazon's Prime Air. I know when they started here a couple of years ago it was maybe three or four flights a day and it has steadily increased.'
But FedEx's Mr Fitzgerald said: 'In a given week, Amazon flies 671 flights. The FedEx number of flights per week is closer to 13,000.'
WORLD SHIPPING