Bottom line: Amazon's is wise to create its own air transportation network. By cutting out the middle man, Amazon is saving money and gets to move products around the country on its own schedule. FedEx and UPS can't be too happy with these developments.
Amazon on Friday announced it is leasing 10 additional Boeing 767 - 300 cargo planes for its Amazon Air operations, pushing its total fleet to 50 aircraft.
Amazon launched its air transportation network in mid-2016 as the next step in reducing its reliance on traditional couriers like FedEx, UPS and the US Postal Service. By cutting out the middle man and routing its own flights, Amazon is likely saving a significant amount of money in the shipping department.
The 10 additional aircraft are coming from Air Transport Services Group, Inc. and will join the Amazon Air network over the coming two years. Its current fleet of 40 aircraft service more than 20 airports, making Amazon's two-day shipping possible in nearly every part of the US.
Amazon on Friday also announced its first fulfillment center in Mississippi.
The 554,000-square-foot fulfillment center will create 850 full-time jobs paying a $15 minimum hourly wage and benefits from day one. Located in Marshall County in Northern Mississippi, the facility's close proximity to a FedEx hub and the Memphis International Airport was no doubt instrumental in Amazon's decision to choose this location.
Lead image courtesy EQRoy via Shutterstock