Amazon wants to be less dependent on FedEx
Just days after FedEx announced it will no longer offer air cargo services to Amazon (AMZN), the e-commerce giant announced yesterday that it is expanding its own fleet of airplanes. Amazon is leasing 15 more Boeing 737-800 cargo aircraft from GE Capital Aviation Services (or GECAS), adding to the five it leased from GECAS earlier this year. The tech giant plans to launch more air facilities this year. Prime Air, now Amazon Air, is the company’s attempt to help expedite deliveries, especially to Prime members.
Amazon spending big on shipments
Amazon aims to spend $800 million this quarter to make free, one-day delivery the standard for all US Prime members. Amazon currently offers one-day shipping in the US for 10 million items.
In the first quarter, the company’s shipping costs rose 21% year-over-year to $7.3 billion. Amazon has spent a whopping $28.9 billion on shipping costs in the last four quarters.