Amazon building own delivery network
A FedEx delivery worker carries a package in Wilmette, Illinois, the US. Picture: REUTERS/JIM YOUNG
The move comes as Amazon builds out its own delivery network of planes, trucks and vans, a move seen as a long-term challenge to FedEx and delivery rival United Parcel Service . The decision does not affect any existing contracts between Amazon and other FedEx business units or relating to international services, the package delivery company said.In recent years Amazon has steadily grown its fleet of delivery aircraft, which Air Transport Services Group and Atlas Air Worldwide Holdings have operated. The company is investing $1.5bn to build an air cargo hub in northern Kentucky, setting it up to rely less and less on others for air shipping.
Forte said that FedEx and UPS operate a duopoly in shipping and Amazon is trying to break that by trying to be more self sufficient to lower shipping costs.
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