Bank of America says Amazon's plans to build its own fleet of carbon-neutral delivery trucks bode well for its bottom line.
The forthcoming Amazon armada of delivery trucks will likely undermine the internet retailer's reliance on existing delivery services like UPS, BofA says.
Amazon on Thursday unveiled an ambitious plan to tackle climate change and committed the seller to meeting the goals of the Paris Agreement 10 years early. As part of those plans, Amazon said it would buy a fleet of electric vans to start delivering packages to customers in 2021.Chris Ratcliffe | Bloomberg | Getty Imageswill soon integrate another step of the e-commerce pipeline after the construction of an in-house fleet of carbon-neutral delivery trucks on par with established players like UPS and the U.S. Postal Service.
Though it could take years bring to full operation, the Amazon armada of delivery trucks will ultimately prove a smart long-term investment, improving the company's profits while also cutting millions of metric tons of carbon emissions per year, according to Bank of America. "We note AMZN's 100k trucks would be comparable to UPS' reported 123k package cars & vans," BofA analyst Justin Post wrote Friday. "We think this announcement, along with aircraft leases and shipping facility investment ... strongly signal AMZN's intentions to build out shipping capabilities similar to leading shipping companies."
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