Unless I'm missing something, the only new thing here is the paint on the plane.
Unless I'm missing something, the only new thing here is the paint on the plane.
Amazon has committed to buy a 20% stake in Atlas with options to expand to 30%
http://www.marketwatch.com/story/atlas-air-grants-amazon-war...
Amazon was contracting with Air Transport Services Group (Airborne Express/DHL US, for those keeping track at home) for flights into and out of Wilmington for an air sort program. Amazon must have crunched the numbers on what they were paying to FedEx and UPS and realized that they could lease planes for what they were paying for someone else to do the deliveries...
40 Aircraft pushing packages from one corner of the globe to another? This means that they can cut their logistics costs (or, alternatively, move them in house from an external vendor, giving them more control) and be able to fine-tune delivery.
In some respects, yes. In other respects, seen any other tech companies painting their logos onto cargo planes recently?
It is an indicator of the way in which Amazon is progressively controlling more and more of their business functions around shipping.
Why would they? Amazon's entire business is reliant on shipping and their USP is basically, you can get anything shipped to you quickly. What other tech company has a requirement like this?
I guess all retailers will try to catch up to Amazon, but there's 20 years or experience and literally billions of investment to recreate.
Even if Walmart (or others) tried to invest enough to catch up, I'm not convinced there are enough engineers (with relevant experience) available! They'd have to poach from Amazon. :)
Nope, Walmart is reportedly in talks to buy Jet.com.