Amazon wants to deliver packages itself instead of relying on other companies.
Amazon is about to dominate the package delivery industry. Within a short time, it would start to directly compete with longtime collaborators, DHL, FedEx, and United Parcel Service, but not in the US. It is probable that during the first quarter, the American e-commerce company would purchase 75% of the French package delivery service, Colis Privé.
Though the European organization is small when compared to multinationals that are moving Amazon parcels across the globe, the procurement would be the biggest measure up till now that the ecommerce organization has taken to make an entrance into the package delivery business for others and itself. It has stated little regarding its intentions. Last year, it purchased one-fourth stake in the French organization.
A spokesperson told the French publication ‘Le Figaro’ in 2014 that the agreement to purchase the other parts of the business would be closing early in 2015. The unidentified spokesperson said the package delivery company would continue to deliver packages for all clients, not only Amazon.
“This purchase doesn’t call into question our work with all the other logistics providers (UPS, La Poste, DHL, FedEx),” the spokesperson spoke to the French publication. “And it’s out of the question for Colis Privé to only deliver for Amazon. The company will continue developing its commercial portfolio.”
Amazon’s representative refused to comment on the plans to participate in the shipping business or Colis Privé. Many analysts are holding the belief that it is putting pieces together across the world to introduce a package delivery facility that would start competing with FedEx, UPS and others.
Apart from Colis Privé, Amazon purchased the right to buy 4.2% of British parcel delivery, Yodel, in 2015. In December, it further made an announcement to add a large number of trucks to its American fleet to manage the increasing burden of its shipments.
The Seattle Times also reported in December that Amazon negotiated to lease 20 Beijing 767 cargo jets, which will represent a vital growth of the company’s cargo trial that Air Transport Services Group operates on its behalf.
The online retailer is interested in building out its own American cargo operations to make sure that delays from package delivery companies, such as FedEx and UPS are avoided. These organizations have not been able to meet the needs of e-commerce sector at times.
In other news, Mirror has reported the Seattle-based company’s offer extensions to members of Amazon Prime free of charge and made repayments after streaming stopped for users with some television models. The problem was faced due to a compatibility issue with some models of Sony Bravia and Samsung televisions.
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