uploads///Amazon Q  rev growth

How Amazon Is Reducing Its Reliance on Delivery Companies

By

Jan. 25 2019, Updated 11:04 a.m. ET

Amazon has been trying to reduce its dependence on FedEx and UPS

e-Commerce giant Amazon (AMZN) has been trying to reduce its reliance on the likes of FedEx, UPS, and USPS (United States Postal Service).

The company has taken heat from President Donald Trump for using USPS as its “delivery boy” and not appropriately compensating USPS for its services.

As the company’s business grows, it hopes to handle a higher portion of its deliveries to avoid the increasing costs of FedEx and UPS. Amazon already runs its core e-commerce business at extremely thin margins.

Article continues below advertisement

The company is investing billions in its own shipping service

Amazon has introduced Amazon Shipping, its home-delivery service, to ramp up its last-mile logistics. The company is looking to expand the service beyond its test markets of Los Angeles and London.

The company also announced recently that it would be adding to its fleet of jet planes, which will allow it to take charge of its own shipping. Amazon spent $18.6 billion on shipping expenses in the first nine months of 2018, a 30% increase compared to the same period in 2017.

Amazon also recently started testing Scout, its delivery robot. The company is piloting the robot in Snohomish County, Washington. If Scout is adopted more widely, it could increase the company’s options for last-mile delivery.

Advertisement

More From Market Realist

  • 100 Thieves founder Matthew Haag
    Company & Industry Overviews
    Why Growing Esports Company 100 Thieves Isn't Publicly Traded
  • Bitski art and logo
    Company & Industry Overviews
    NFT Platform Provider Bitski Isn’t Publicly Traded
  • who are palantir customers
    Company & Industry Overviews
    Palantir Customers Are Large Defense and Commercial Institutions
  • Grain trucks waiting to be loaded and Archer Daniels logo
    Company & Industry Overviews
    Archer Daniels Stock Is a Buy Amid Price Dip and Big Announcement
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.