AMERICAN e-commerce giant Amazon
is working on expanding its Prime
Air cargo fleet to encompass 200 planes by 2027 or 2028, reports Bloomberg.
Currently, the e-commerce service
utilises 42
freight aircraft to move goods across
the world. Once fully upgraded, the corporation's air delivery segment will
near the size of the United
Parcel Service's (UPS) aerial
transportation capacity.
Initially an online bookseller,
Amazon has established itself as one of the world's largest retailers in the
last 26 years. As it has expanded, the firm has run into problems with delivery
providers like FedEx that view it as competition. In response, the company created
Prime Air fleet to supplement and better manage its global supply chain in
2016.
Recently, the corporation has
worked aggressively to increase its number of freight aircraft. In less than a
year, the firm has doubled its fleet size and will expand it by a factor of
five within the decade. As part of the initiative, the company will also spend US$1.5 billion building a
facility in Cincinnati, Ohio,
which will accommodate 100
planes and 200 flights per day, according
to media reports.
DePaul
University's Chaddick Institute of Metropolitan Development published a report indicating Amazon's new hub might
allow it to offer overnight package transportation. By doing so, the
corporation will further reduce its reliance on third-party logistics providers
and expedite its package deliveries. In addition, the e-commerce brand's supply
chain enhancements are not limited to its cargo plane fleet.
Amazon has also dedicated some of
its resources to developing more robust autonomous vehicle solutions.
Last year, the corporation took
part in a $530
million Series B fundraising
round conducted by self-driving
car company Aurora. Amazon explained it had an interest in harnessing
the firm's technology to make its operation safer and more productive.
Amazon
also placed an order for 100,000 electric delivery vans from battery-powered
vehicle startup Rivian. The e-commerce
company said it made the purchase as part of its broader commitment to
protecting the environment. But the corporation also likely has an interest in
the burgeoning automaker's in-development self-driving car platform.
Despite possessing a market
capitalisation of over $1 trillion, Amazon's rising spending costs have
severely cut into its profitability.
By
building its air freight division, electrifying its ground fleet, and
developing last-mile bots, Amazon is working to lower its logistics costs and
ensure its long-term financial stability.
Source : HKSG.
Tidak ada komentar:
Posting Komentar