Amazon is Building a Hub for its Own Cargo Airline
Amazon.com’s logistics network just grew a little bit larger. The e-commerce giant announced it will open its own cargo hub in Northern Kentucky. Re/code reports the new facility plans to employ 2,000 people and will be the eventual home to 40 Amazon Prime Air planes. Sixteen planes are already in service. The move is in addition to Amazon’s purchase of thousands of its own truck trailers. In addition, Amazon is also starting to act as an ocean freight operator to move goods to and from the U.S. and China.
Total Retail’s Take: Amazon CEO Jeff Bezos has said in the past that the online retailer isn’t trying to directly compete with UPS or FedEx, however, recent moves by the company seem to suggest otherwise. The newest additions to the company will certainly help with the promise of one-day shipping, as well as enable Amazon to become an even stronger competitor of brick-and-mortar retailers in today's all-on commerce environment.