While Amazon has grown from a simple bookseller to a retailing behemoth, motorized trailer dollies have not been an item normally associated with the company. That may be changing as Amazon steadily works to fulfill its dream of becoming a package delivery service.
So what does this ambition mean for FedEx, UPS and other shipping mainstays? If Amazon’s track record of success is any indication, the news isn’t good.
A New Player in the Package Delivery Industry?
Amazon has continued to pay lip service to its partnership with FedEx and other delivery services, saying that its own shipping infrastructure is merely a supplement to handle excess demand. But as the online giant continues to build a network of warehouses, package sorting centers, airplanes and truck trailers, the endgame is hard to deny.
Securities filings show that in 2017, Amazon spent $13.2 billion on building its logistics networks. That amount is five times the comparable expenditures in 2015 and more than double the capital spending of both FedEx and UPS last year.
Meeting FedEx and UPS Head-On
If there was still any doubt about Amazon’s intentions, the company struck a direct blow earlier this year with the rollout of Shipping with Amazon in the Los Angeles area. While the service currently handles deliveries only for Amazon’s third-party vendors, it’s anticipated that the company will eventually move to include other cities and customers.
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