Amazon will probably have its own airline soon
Amazon’s aircraft fleet is going to double in size in the coming months, potentially expanding into an airline and hauling third-party shipments.
Amazon’s air cargo fleet is a critical part of the company’s strategy to meet its increasingly ambitious one- and two-day delivery targets. By the end of 2022, Amazon will have a fleet of 85 planes, reports CNBC.
Analysts believe Amazon’s growth trajectory could set it on a collision course with major shippers, including Fedex and UPS. Morgan Stanley has recently predicted that Amazon will launch a third-party delivery service in the U.S. once the pandemic eases.
But even as it awaits its moment to level up in the cargo industry, Amazon appears to already have its eyes on an even bigger prize, writes Gizmodo. Joseph Schwieterman, director of the Chaddick Institute, told CNBC that the company’s recent decision to cut ties with outside contractors and bring its air cargo operations entirely in-house could signal an eventual ambition to significantly expand Amazon Air into something resembling an airline.
More Amazon news
Major shutdowns in China due to new COVID outbreaks
Multiple companies in Zhejiang province have suspended operations due to COVID-19 outbreak, halting production of goods from batteries and clothing to textile dyes and plastics. Zhejiang is one of China's biggest and busiest manufacturing hubs. The local government...
Amazon is using sellers as a cash cow
Amazon collects a third of seller revenue A new study claims that Amazon makes far more from fees on its Marketplace platform than even the cash cow known as AWS, reports TechCrunch. According to the report by the Institute for Local Self-Reliance, sellers now give...
Inflation spreads to e-commerce
A recent report by Adobe shows that e-commerce is experiencing many of the same pricing pressures in the broader economy due to supply chain problems, higher shipping and labor costs. Online prices rose 1.9% in October from a year earlier and 0.9% from the previous...
