Amazon expands its fleet, threatening FedEx or UPS business

World's Largest Online Store Expands Its Own Aircraft Fleet. Over the next two years, he will lease another ten Boeing 767s. Currently, the company has four dozen aircraft available.

Amazon expands its fleet, threatening FedEx or UPS business
Amazon expands its fleet, threatening FedEx or UPS business
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Five of the new aircraft should be used next year, the remaining five in 2020, CNN said. With the expansion, however, the company is far from finished, during the seven years it would apparently be able to rent 17 new aircraft.

So, Amazon is taking the next steps towards independence from FedEx or UPS shipping companies. At the same time, transport costs make an increasingly important item in the company's budget. Just in the first nine months of this year, Amazon paid $ 18.6 billion to carriers, which is almost one-third more than in the same period of the previous year.

Nevertheless, Morgan Stanley analyst Ravi Shanker said in December that FedEx and UPS could lose a tenth of revenue by 2025 as a result of the expansion of Amazon Air. Shanker's e-commerce will save between $ 2 and $ 4 on each shipment that its own fleet carries over from third parties.

However, in addition to shipping costs, Amazon may also suffer from the development of its share price. They lost more than ten percent of their value in the last month.
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