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Industry news

Amazon is no longer dependent on UPS, and its own logistics is expected to save $1 billion

2018-01-02 23:31:27

Recently, according to foreign media reports, Amazon said it would rent 20 Boeing 767 jets to serve its own airlift business. It is reported that Amazon paid UPS logistics expenses to 1 billion US dollars this year, an increase of five times compared with that in 2005.

Amazon had previously bought thousands of truck trailers for distribution in the United States, and launched UAVs distribution and truck drivers to deliver on demand. The increase in logistics costs has prompted Amazon to build its own logistics system and no longer rely on UPS.

Data showed that Amazon's logistics cost accounted for 11.7% of its total revenue in the third quarter, up 10.4% compared to the same period last year. People familiar with the matter said their wood white is reducing their dependence on UPS logistics operators. A UPS spokesman said that UPS will continue to work closely with Amazon to help them reduce costs and meet the challenges of user services.

Insiders pointed out that Amazon to Atlas aviation Global Holding Corp, air services group and other aviation group leased 25 cargo aircraft, including Boeing 767, Boeing 300, build their own air transportation system, the fastest in the first half of 2016 can be achieved, all aircraft is expected within 3 years have set sail.



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