Amazon’s Small Hub Plan Threatens UPS, U.S. Postal Service

As the holiday season looms, Amazon plans to launch 1,000 small delivery hubs throughout the U.S., according to sources. With COVID-19, online orders soared, and Amazon was not capable of meeting its two-day delivery pledge. The company hired 175,000 new workers, which has helped clear the delivery pipeline, but wants to ensure that Amazon Prime subscribers can get as many products as possible on the same day. Its rivals Walmart and Target are able to speed deliveries due to their thousands of well-located stores. Continue reading Amazon’s Small Hub Plan Threatens UPS, U.S. Postal Service

Amazon Reports Booming Sales, Profits, and Share Prices

Amazon broke previous records with its Q4 sales, and shares skyrocketed 10 percent in after-hours trading, adding $100 billion to its market value. Profits rose 8 percent to $3.3 billion during the holiday quarter, after suffering a 25 percent decline in Q3 due to the expenses of one-day shipping for Prime members. Q4 revenue rose 21 percent to $87.4 billion from the same period a year earlier.  A FactSet survey showed that earnings per share were $6.47 whereas analysts had predicted $4.04. Continue reading Amazon Reports Booming Sales, Profits, and Share Prices

Amazon to Launch Small Delivery Companies for ‘Last Mile’

Amazon is expanding its package delivery business in an interesting way: it’s inviting interested parties to form small delivery companies of up to 100 drivers and to lease between 20 and 40 Amazon vans. In this way, Amazon can quickly expand its “last mile” delivery network into turf now dominated by FedEx and United Parcel Service. The company says it is merely responding to the need to handle an increasing number of orders on its platform; analysts estimate that more than $4 of every $10 spent online is on Amazon. Continue reading Amazon to Launch Small Delivery Companies for ‘Last Mile’

Amazon Plans to Launch New Delivery Service for Businesses

Amazon plans to launch “Shipping with Amazon,” a delivery service that will start in Los Angeles and cater to the independent merchants that sell on its site. The company intends to expand the service to additional cities and businesses over time. But analysts conclude that Amazon would have to spend tens of billions of dollars, and buy thousands of trucks, hundreds of planes and create thousands of sorting centers to scale out to the national level and handle millions of packages daily. Continue reading Amazon Plans to Launch New Delivery Service for Businesses