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Amazon's latest acquisition is another sign that it intends to start its own delivery service

By midian182
Jan 12, 2016
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  1. It seems that Amazon isn’t content with just being an e-commerce behemoth, consumer electronics producer, streaming content site, and the world’s largest provider of cloud infrastructure services, it also wants to become a shipping giant that can compete with the likes of UPS and FedEx.

    Jeff Bezos’ company already owns 25 percent of shipping firm Colis Privé, and is expected to buy the remaining 75 percent later this year. While the French company’s size may not come close to the likes of multinationals such as UPS, the acquisition represents Amazon’s biggest hint to date that it intends to start delivering its own goods, as well as packages from other companies.

    A spokesperson for Colis Privé said that Amazon would continue to operate it as a separate business and that the company would keep on shipping packages on behalf of all e-commerce customers, not just Amazon. But Amazon hasn’t said what its long-term plans are for Colis Prive, and analysts believe that this is another move from the online giant in preparation for entering the shipping business.

    Amazon acquired the right to purchase 4.2 percent of UK parcel company Yodel in 2014, and has recently added thousands of trailers to its fleet in order to meet increasing demand. In November, the company was reported to be behind a secretive air cargo operation codenamed “Aerosmith” that was conducting flights to and from Wilmington Air Park with airports in Allentown, Pennsylvania; Ontario, Canada; Tampa, Florida and Oakland, California.

    UPS and FedEx have struggled to keep up with delivery demands caused by the ever-increasing growth of online shopping. In the past, both companies have failed to deliver goods during the holiday season.

    Amazon spends a huge amount of money on shipping costs - $3.2 billion in the third quarter of 2015 – and the company wants to cut this cost by using its own shipping network. Amazon knows it could make money from this service by offering it to others, much like it did with Amazon Web Services.

    There is, of course, a very long way to go before Amazon is in direct competition with the US delivery companies it relies on today, but this acquisition marks a big step toward that goal.

    Permalink to story.

  2. gobbybobby

    gobbybobby TS Guru Posts: 551   +9

    So who are Amazon logistics? I live in a city that offers same day delivery now and its always delivered by someone driving an unmarked white van with the courier on Amazon.co.uk listed as "Amazon logistics" if amazon had a fleet of delivery vehicles they would plaster amazon allover it right. I should speak to the next driver. Who are you, who do u work for, where have you come from!

    I suspect it's freelancers like the people who delivery my hermes, people with there own van who just deliver Amazon's packages as and when there needed it would explain why they bang on the door and chuck the package at you or just leave it under a box in the garden they probably get paid pre package delivered and are pressured to just get them out as fast as possible.

    So ag least in the UK Amazon have already got pretty good logistics would not take much for them to go commercial
  3. Camikazi

    Camikazi TS Evangelist Posts: 923   +283

    I hope Amazon gets this going and learns how much of a PITA it is to deliver their ungodly amount of packages every holiday season. I work for UPS and even in a small state (I live in Connecticut) Amazon packages alone almost double the workload we normally get during the holiday season. We normally process around 35-45k packages a day in my center but around Christmas that number can hit 110k which means a sometimes 11 hour shift for the part-timers and who knows how many hours for the full timers.
  4. Mandark

    Mandark TS Booster Posts: 76   +22

    They WILL do it, but they won't ***** because they like making money. and working.

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