Lately Amazon announced a new air cargo hub in Kentucky. If the ohline retain giant succeed in building up its own shipping and logistics unit, the products sold on its platform would be delivered faster and to be priced tagged lower too for consumers.
Isn’t this mean Amazon is looking ahead in becoming its own deliveryman too and pit the company against package deliveries like UPS and FedEx.
For long the retailer has been plowing profits into its business investments. The new example is opening new distribution centers and leasing fleets of trucks.
It is not to be overlooked it leased forth Boeing jets from Air Transport Services Group Inc. and Atlas Air Worldwide Holdings. The fleet is dubbed as Prime Air by Amazon.
Amazon announced Thursday it has outpaced retail sales and number of items sold in Q4 rose by 24 percent compared to the same quarter in 2016. The revenue was increased by 22 percent to $43.74 billion, even though analysts say it missed slightly their expectations.
The profit of Amazon too rose in fourth quarter by 36 percent to $749 million, or $1.54 per share.
Earlier this week the online retail giant announced to be building a worldwide air cargo hub at a northern airport, which is some thirteen miles southwest of Cincinnati. It is believed the project would be eating away about $1.5 billion investment and to create 2,700 jobs.
DHL has a big air hub at Cincinnati/Northern Kentucky International Airport and UPS has an international shipping hub in Louisville.