Originally Posted by
Gunfighter
Amazon is vertically integrating their business. Today it's a few used airplanes. Tomorrow they buy CVG and turn it into a cargo hub that rivals SDF and MEM. They already have fleets of delivery vehicles in most major metro markets. Amazon is on pace to deliver 6.5 Billion packages next year. For reference, UPS delivers 5.5 Billion packages per year.
Amazon grew from an online book retailer to a WalMart competitor.
Amazon Web Services used their expertise in managing gigantic networks to become one of the worlds largest cloud computing providers rivaling Google and Microsoft.
Who thinks their in house air cargo will grow to compete with FedEx and UPS?
Amazon will focus first on their ongoing build out to completely service their network. They will do this until all kinks are worked out and they have complete coverage with little or no service failures. Then when they have the network, the procedures worked out, and the excess capacity, they will set out to crush UPS and Fedex. Both of those companies completely screwed Amazon in the early 2010s and dropped the ball on a bunch of Christmas deliveries and caused tons of customer service problems. Amazon made the decision to build out their own systems at that time and have been moving at a rapid pace to get it done.
They want all of their operations in house because they feel that no other company will serve their customers as well as they will.