Retail

Amazon To Build Logistics Capabilities With Carbon-Neutral Electric Trucks

With the formation of an in-house armada of carbon-neutral delivery trucks, Amazon will soon integrate another step of the online shopping pipeline. The delivery truck fleet will prove to be an intelligent long-term investment, bolster the firm’s profits and reduce carbon emissions per Bank of America, CNBC reported.

Amazon CEO and Founder Jeff Bezos had unveiled a plan to take on climate change and committed the merchant to fall in line with the Paris Agreement’s aims a decade early. With those plans, the eCommerce retailer said it would purchase a fleet of electric vans to begin sending packages to shoppers in 2021. By 2022, 10,000 of the new carbon-neutral vehicles will be reportedly operating. And, by 2030, all 100,000 would reportedly be operating.

Bank of America analyst Justin Post wrote, according to CNBC, “We note AMZN’s 100k trucks would be comparable to UPS’ reported 123k package cars & vans.” Post continued, “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.”

The analyst added that the climate goals of the eCommerce retailer only bolster his conviction that investors should purchase the stock. Post wrote, according to CNBC, “We remain constructive on Amazon’s ambitions to build out its own delivery infrastructure capabilities (less dependency on USPS and other partners), and the potential benefit from prime 1-day shipping on units and sales in 2H′19.”

In separate news, a report surfaced earlier this week that Amazon said it has started hiring delivery drivers in Germany as it bolsters its logistics arm, with plans to open 11 more distribution centers in the country. Amazon entered Germany in 2015, and it is now its second-biggest market.

The push is reportedly part of the plan of the eCommerce giant to build its own land, sea and air logistics operation to help contain shipping costs. Bernd Gschaider, Germany director for Amazon Logistics, said per an earlier report, “If we have last-mile in our own hands we can offer more services like same-day delivery.”

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