January 29, 2016
Amazon’s CFO Brian Olsavsky has confirmed that Amazon is building its own logistics service, but he reassured the industry that the goal is not to take over UPS and FedEx’s market share. Rather, the largest online retail is aiming to better serve its customers with timely delivery as the volume of orders rapidly rises.
Many analysts are concerned over the company’s lofty plans, as the costs of trucks and leased jets will greatly dig into profits. Others feel that the logistics service has the potential to overtake big delivery services in the same way the company has dominated the online retail space.
Olsavsky said, “We’ve had to add more of our own logistics to supplement our partners, not to replace them.”