AMAZON is embarking on a spending spree to grow its shipping business to compete with FedEx and UPS, reports CNBC TV.
'They want to be a new kind of US Postal Service where everything can get everywhere, but also quickly,' said e-commerce consultant Chris McCabe.
Amazon's first-quarter earnings report declared its capital expenditures up 80 per cent from a year earlier, helping increase the capacity of its in-house logistics network 50 per cent.
amazon is now shipping 72 per cent of its own packages, up from 46.6 per cent in 2019.
In 2014, Amazon began building its global transportation network, and now has 400,000 drivers worldwide, 40,000 semi-trucks, 30,000 vans, and a fleet of more than 70 planes.
Currently, the biggest investment is a new US$1.5 billion Amazon Air hub that opened in Kentucky in August.
Said Amazon researcher Dan Romanoff: 'They're not going to be just this blanket carrier that will deliver whatever package that you want them to, to whatever address. Amazon is sort of cherry-picking their routes. They want to run and sort the parcel sizes they want to deliver.'
Amazon seller Keith Gregory just started using Amazon Freight, a programme for sending seller's inventory to fulfillment centres nationwide, and stated Amazon charges up to $1,700 less than FedEx or UPS Freight for some of his routes.
'For us being in a rural community, the fact that somebody is willing to cater to us, and they're willing to accommodate pick-up schedules and not just say, 'Okay, we'll be there every day at 3:30,' is also very attractive, too. So not just not just the rate piece, but the fact that they're also willing to use their vast fleet of vehicles to help us with our logistics as well, which UPS and FedEx are not cooperative in that sense,' said Mr Gregory.
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'They want to be a new kind of US Postal Service where everything can get everywhere, but also quickly,' said e-commerce consultant Chris McCabe.
Amazon's first-quarter earnings report declared its capital expenditures up 80 per cent from a year earlier, helping increase the capacity of its in-house logistics network 50 per cent.
amazon is now shipping 72 per cent of its own packages, up from 46.6 per cent in 2019.
In 2014, Amazon began building its global transportation network, and now has 400,000 drivers worldwide, 40,000 semi-trucks, 30,000 vans, and a fleet of more than 70 planes.
Currently, the biggest investment is a new US$1.5 billion Amazon Air hub that opened in Kentucky in August.
Said Amazon researcher Dan Romanoff: 'They're not going to be just this blanket carrier that will deliver whatever package that you want them to, to whatever address. Amazon is sort of cherry-picking their routes. They want to run and sort the parcel sizes they want to deliver.'
Amazon seller Keith Gregory just started using Amazon Freight, a programme for sending seller's inventory to fulfillment centres nationwide, and stated Amazon charges up to $1,700 less than FedEx or UPS Freight for some of his routes.
'For us being in a rural community, the fact that somebody is willing to cater to us, and they're willing to accommodate pick-up schedules and not just say, 'Okay, we'll be there every day at 3:30,' is also very attractive, too. So not just not just the rate piece, but the fact that they're also willing to use their vast fleet of vehicles to help us with our logistics as well, which UPS and FedEx are not cooperative in that sense,' said Mr Gregory.
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