Summary of Amazon Is Quietly Shipping Non-Amazon Orders To Compete With FedEx, UPS

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Amazon is growing its shipping business and competing with FedEx and UPS. Amazon has increased its in-house logistics network by 50% year-over-year, and has started shipping for third-party orders. Amazon has a large fleet of planes, trucks, and drivers, and has opened a new air hub in Kentucky.

  • 00:00:00 According to CNBC, Amazon is on a spending spree to grow its shipping business and compete with FedEx and UPS. Amazon has increased capacity of its in-house logistics network by 50% year-over-year, using all that growth to get into the big business of third-party shipping. In 2014, Amazon started building its global transportation network from scratch. Seven years and 10 billion deliveries later, Amazon now has 400,000 drivers worldwide, 40,000 semitrucks, 30,000 vans and a fleet of 70+ planes operating out of its very own air hub that just opened in Northern Kentucky in August. Although Amazon still depends on UPS and the Postal Service for more than a quarter of its deliveries, analysts say this reliance is shrinking. Instead, Amazon is competing with them, already offering shipping services for non-Amazon orders in the U.K. Eventually they were going to offer it to someone else. That's just how the system works. Amazon's usually more efficient than anyone else. Amazon's usually focusing on the right numbers, and so they're usually able to get cheaper than everyone else, too. CNBC headed to an online merchant conference in Las Vegas to talk to former Amazon employees and current sellers about how third-party
  • 00:05:00 According to the narrator, Amazon is quietly shipping non-Amazon orders to compete with FedEx, UPS. The new 600-acre Amazon hub in Kentucky includes an 800,000-square-foot robotic sort center, and Amazon is expanding its fleet of aircraft and trucks.
  • 00:10:00 The Amazon Freight program lets sellers like Gregory take advantage of less than load truck space, at discounted rates, while allowing Amazon to make money on otherwise wasted space. This program may help Amazon hold on to its reputation for the lowest prices online.
  • 00:15:00 The narrator discusses Amazon's history of investing in logistics, and how this has helped them become the largest online retailer in the world. He predicts that Amazon will eventually overtake UPS and FedEx as the world's leading logistics provider.

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