If there’s one tech giant company which is dominating the ecommerce industry, then it’s undoubtedly the Amazon. Because of its excellent business expansion amazon has become the top ecommerce company in the USA and other parts of the world also. But, even if the company has grown that much great the management of the company is trying to save billions of dollars by buying planes, vans to build their own transportation network. Recently it’s been observed that the Amazon has decided to enter into the transportation industry to cut their transportation cost which is approximately more than 15 percent of their total revenue. Even if Amazon is enjoying a monopoly in the ecommerce sector, they’re still trying to become the best, and that’s why the company is buying a massive number of vehicles to build their transportation system.
The president Donald Trump has severely criticized Amazon because according to him Amazon costs billions of dollars to the united states posts and due to the company’s such expansion, the pressure on delivering goods is coming onto to the shoulders of United States Posts. But to avoid such kind of negative publicity also to save fulfillment charges Amazon decided to build their transportation network and so far the Amazon has ordered more than 20000 vehicles for their transportation network. The company is soon going to hire lots of individual contractors who will help them to deliver the packages and due to which Amazon is hoping to create more jobs in transportation business which would ultimately increase company’s Goodwill and public Image.
However, Amazon is trying to buy airplanes too to expand their transportation network which is concerning some investors of the company. Because according to the investors the Amazon will have to compete with giant transportation companies like FedEx which won’t be that much easy. However, this decision might save tons of amount of monies for the company if it succeeds.