Amazon gears up to invest in transport
–Although Amazon is easing its fulfillment center growth as competitors try to bolster their own distribution capabilities, other areas of its operations are still receiving plenty of attention. Olsavsky hinted at “additional levels of investment” in transportation capacity coming in 2022.
With more people and vehicles moving goods, Amazon can deliver to rural areas of the U.S. without calling on the services of UPS and the Postal Service, Wulfraat said.
“We think that’s what their goal is, that they want total control over their destiny when it comes to delivery,” Wulfraat said. “We think that ultimately they do want to eliminate UPS and USPS as partners. There’s certainly a lot of clues that lead us to believe that.”
Greater transportation control would help shield Amazon against rising costs. Amazon reported higher third-party carrier costs in Q4 — an incentive to invest in owned capacity.