Delivery Services Could be Amazon’s Next Billion-Dollar Business As The Company Expands Capacity

February 1, 2021

What is Happening?


Ecommerce continues to grow and Amazon’s need for rapid and reliable logistics is also growing to meet demand. Amazon is buying 11 used Boeing 767-300 jets as the company expands its air cargo capacity.

This is the first time the company has purchased planes for its fleet. And is a sign of increasing demand for cargo carriers and fast deliveries.

Amazon now delivers 2/3rds of its own packages in the United States and has a fleet of 20,000 vans.

What Does it Mean?


Amazon will become their own biggest delivery customer. Alongside new delivery hubs, owning more capacity in the air will help Amazon take market share from bigger logistic companies.

A report that came out last year estimated that Amazon Air could grow its fleet to include 200 airplanes by 2027. This would make it one of the largest cargo fleets in operation behind only FedEx and UPS.

"As we add capacity, we're trying to resume more normal operations as far as the shipping of nonessential items and the speeding up of one-day shipments," Amazon Chief Financial Officer Brian Olsavsky said on the company's April earnings call.

🤔 Control. Speed. Cost. Amazon wants control over its own destiny. The company seems to be following its tried and true method of 'we partner, we learn, we bring it in-house'.