Amazon May Take On FedEx's Air Delivery Service

Could Amazon be the next FedEx?

At least according to the recent news reported by The Seattle Times, it appears Amazon is attempting to do so. Citing unnamed cargo industry execs, the paper reported that Amazon is in the works to lease 20 Boeing 767 jets to make its air delivery service a reality.

This isn't necessarily a surprise for Amazon as it has begun to bulk up its delivery service with talks about launching its own ground delivery service. And then, of course, is its longstanding plans to roll out its drone delivery service. The real draw for Amazon to get into the delivery game is to take control over its own delivery times, as eCommerce's popularity increase strains the traditional delivery carriers.

For example, UPS, the USPS and FedEx have already been struggling this holiday season to keep up with the influx of deliveries.

Amazon is pretty fed up with the third-party carriers being a bottleneck to their growth,” Robert W. Baird & Co. Analyst Colin Sebastian told Seattle Times.

Sources said to be familiar with Amazon's delivery plans said it has been working with Air Transport Services Group (ATSG), Atlas Air and Kalitta Air, but those names have yet to be confirmed.

One leasing executive told Seattle Times that he believes Amazon is getting serious about its plans but was unable to give his name since he said his company may eventually do business with the eCommerce giant. What's also being speculated is that Amazon could eventually bulk up its delivery service to help other companies delivery, which would put it in direct competition with UPS and FedEx.

Offering up its delivery services to other retailers could also make use of Amazon's rapidly expanding warehouse plans, which could bring its delivery and warehouse plans full circle.



The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.