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Amazon Unveils Cargo Plane as it Expands Delivery Network
Techlife News
|August 14,2016
Seattle-based Amazon is unveiling its first branded cargo plane, one of 40 jetliners that will make up the e-commerce giant’s own air transportation network as it takes more control of its delivery process.
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The latest push to speed delivery of its products comes as the company ships an increasing number of packages worldwide. Amazon’s parcel volume was an estimated 1 billion packages in 2015. By way of comparison, in the 2016 fiscal year FedEx delivered about 3 billion packages for hundreds of thousands of customers.
Amazon has had issues with the reliability of air freight services. In 2013, it offered refunds to customers who received their Christmas orders late after bad weather and a jump in online shopping caused delays for UPS and FedEx.
Analysts say it makes sense for Amazon to use an air fleet it controls as another way to get its products to online shoppers drawn to fast, no extra-cost delivery.
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