Goal; to circumvent UPS and FedEx.
Amazon just purchased thousands of its own, Amazon-branded trailer trucks to transport products between its various fulfilment and sortation centers, the company announced Friday morning.
Although Amazon works with other trucking partners, and will continue to do so, the new trailers will help Amazon increase its shipping capacity.
Before Amazon made its announcement, Re/code's Jason Del Rey reported the news, and notes that Amazon only bought the trailers, and not the actual tractors that will pull them.
For their first delivery, the trailers will be packed with Amazon-crafted care packages which will get shipped to soliders abroad who can't come home of the holidays.
The new trailers align with Amazon's increasing desire to take control of its fulfillment process to make it as fast as possible. Last month, Vice reported that it appeared that Amazon was testing out air transportation services in Ohio. As the company expands its Prime and Prime Now delivery services — which deliver packages in two days and a few hours, respectively — it has started partnering with independent contractors and local couriers over UPS and FedEx, and Del Rey reports that former employees say the goal is to circumvent the two eventually.
Amazon buying thousands of trailers.
Discussion in 'Other News' started by Chinatown, Dec 4, 2015.
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They have them all lined up out by the Indianapolis airport...decals say Amazon Prime.
Pintlehook and Chinatown Thank this. -
I work at an Amazon fulfillment center. Amazon is a very long term thinking company; they have yet to turn a profit because they are busy trying to gobble up all the competition possible and have as much control over their distribution process as possible. They don't have Amazon trucks yet, but I promise that they are planning on it in the future.
That being said, there have been plenty of times where their need for dominance and extension in every marketplace has floundered; the Fire phone would be an example of this. It just seems, from my perspective, that they often underestimate the difficulties of fields that they over extend themselves into.LuDiesel, tow614, Pintlehook and 1 other person Thank this. -
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I didn't major I business. How can someone that doesn't make a profit go out and buy trailers? To me this would be a smart move, having their on trailers. Am I missing something? Could someone explain it.
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Don't leave that Amazon trailer sitting around anywhere in West Memphis unattended. You will comeback scratching your head saying to yourself..........I know I parked here.....I know it.....Cause I remember the fence was torn up and the garbage can was overflowing. Where did my truck go??????????????
scottlav46, Arkansas, flood and 1 other person Thank this. -
Wont be long and they will have tractors then when that goes well they will get package cars.
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They may also gain more cashflow from the stock investors, also (I to am not a business major). It's at $672+ at the moment.
As for what the trucking jobs will be like for Amazon, I picture them paying very roughly industry average with decent to average benefits and little room for advancement. They pride themselves on being a "thrifty" company. It'll probably be really high pressure deadlines, as a vital part of their business model is getting products to customers as fast as possible. I suppose like the ltl companies but not as good pay. I imagine it will probably be a mess when they first start. On the bright side, I don't see them doing some lease scam.Last edited: Dec 5, 2015
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Very interesting story.
Will this end like other dot coms ???? -
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