Amazon Has Leased 20 Boeing 767s For Air Delivery Fleet

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It looks like Amazon is beefing up its delivery fleet by leasing twenty Boeing 767 freight aircraft to "ensure air cargo capacity to support one and two-day delivery for customers."


Amazon has finalized a deal with Air Transport Services Group (ATSG), an airline leasing company, to operate an air cargo network in the U.S. The deal has Amazon leasing 20 Boeing 767 freight aircraft to carry out order deliveries for Amazon Fulfillment Services. ATSG will operate the aircrafts, along with ABX Air and Air Transport International.
 
I knew Amazon would eventually head into the logistics business and cut out the middleman. I have a friend that works for UPS. He says that most of all his deliveries are from Amazon.com. Imagine how much Amazon.com could save if they handled everything from start to finish and didn't have to support UPS or FedEx.

Investors have always been hard on Amazon for "not making a profit", but Amazon has been reinvesting, not profiting. Some day, soon, they will basically control the retail market.
 
OregonLAN said:
Investors have always been hard on Amazon for "not making a profit", but Amazon has been reinvesting, not profiting. Some day, soon, they will basically control the retail market.
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This. The only reason they don't make a "profit" is because they spend that profit to improve their business, unlike most companies. This gives them an edge while everyone else falls behind. Imagine if more companies did this.
 
All across America, poeple are waiting for their Amazon package to be delievered

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OregonLAN said:
I knew Amazon would eventually head into the logistics business and cut out the middleman. I have a friend that works for UPS. He says that most of all his deliveries are from Amazon.com. Imagine how much Amazon.com could save if they handled everything from start to finish and didn't have to support UPS or FedEx.

Investors have always been hard on Amazon for "not making a profit", but Amazon has been reinvesting, not profiting. Some day, soon, they will basically control the retail market.
Click to expand...

It's not even that. Amazon wants to control EVERYTHING.

Look at how many markets they are getting into.

I seriously expect an Amazon search engine in the next 5 years.

Look at their logo, it's right there.....A to Z. They want to be involved in ALL aspects of your life. Everything you need or want, will go through Amazon. That is their goal.
 
SparkedFire said:
This. The only reason they don't make a "profit" is because they spend that profit to improve their business, unlike most companies. This gives them an edge while everyone else falls behind. Imagine if more companies did this.
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Not so much improve, they have always been quite good, what they were dumping money into was growing, but that growth on the retail side has out paced UPS/USPS/FedEx ability for a while now. But they have more than that, they started with books and retail, but sell just about anything you can think of now, make a good few of their own products, have a very large and growing cloud server service, which is actually one of their fastest growing divisions, also Amazon will still be dependent on UPS/USPS/FedEx for last mile, these are cargo planes, not a ground fleet, but that is easier for 3rd party to cover, however getting things out from warehouses to given hubs, this has been one of their bottlenecks for a while, but mostly for over night and second day items, meaning mostly for prime users, but that is a large and very fast growing user base.
 
In other news, Amazon reported today that it will be raising the price of Amazon Prime from $99 per year, to $149 per year. The increase is quoted as being in direct result of increased shipping costs......
 
I get irritated sometimes. 2-day prime becomes an expectation.

I ordered on Sunday afternoon, package should have been shipped on monday and delivered by Wednesday.
They didn't ship until Tuesday, so scheduled for Thursday.

WTF amazon!
I paid for Prime 2-day shipping, not 2-day processing PLUS 2 day shipping!
 
J Macker said:
I get irritated sometimes. 2-day prime becomes an expectation.

I ordered on Sunday afternoon, package should have been shipped on monday and delivered by Wednesday.
They didn't ship until Tuesday, so scheduled for Thursday.

WTF amazon!
I paid for Prime 2-day shipping, not 2-day processing PLUS 2 day shipping!
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Call them, or go to online chat. They will help you out.

Last item I had an issue with was a flash drive, paid 3.99 for over night, it shipped out same day, but when it got to the FedEx hub it sat there for a day, so it took the normal 2 days to get to me. Went to online chat, told them the item didn't make it over night, right off the bat said they would refund the shipping and add 3 months of prime free. I don't have issues often, but when I do they do refunds and tack on free months of prime without even having to argue or even ask for it. One item I got was a small key chain, 3 days go by and nothing (shipped normal 2 day prime), it just showed it was at my local hub for a whole day and no movement. Chatted with support, they said they were going to assume it was lost in transit and if I wanted a replacement or refund, I said replacement, and they placed a new order right away and upgraded it to over night, and gave me 2 months free prime for the trouble. I have had prime for a long, long time and last year alone spent over 10k with them, so the problems I have are very very few for the amount of stuff I order from them.
 
westrock2000 said:
It's not even that. Amazon wants to control EVERYTHING.

Look at how many markets they are getting into.

I seriously expect an Amazon search engine in the next 5 years.
Click to expand...

From wikipedia, "A9.com originally operated a search portal, which went live on April 14, 2004. The search portal functionality was discontinued in 2008." Maybe they'll do it again? They did also originate street view (they called it block view), but google scaled it up better, and everyone forgets Amazon started it.
 
J Macker said:
I get irritated sometimes. 2-day prime becomes an expectation.

I ordered on Sunday afternoon, package should have been shipped on monday and delivered by Wednesday.
They didn't ship until Tuesday, so scheduled for Thursday.

WTF amazon!
I paid for Prime 2-day shipping, not 2-day processing PLUS 2 day shipping!
Click to expand...

Wow, that sucks. When I order on a Sunday, it usually ships on Sunday and arrives by Tuesday.
 
SparkedFire said:
This. The only reason they don't make a "profit" is because they spend that profit to improve their business, unlike most companies. This gives them an edge while everyone else falls behind. Imagine if more companies did this.
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Most companies can't go 20 years without making a profit (or barely making one in the good years). Honestly, Amazon sells at an insane multiple. It may pay off, but if other companies get there online shit together (as Wallyworld is attempting to do over the next few years), it may hurt Amazon.

A lot on here are very loyal, but many are not and as Amazon opens retail stores in each state, the sales tax advantage goes away and most of there deals are matched by Walmart, Best Buy and Fry's (to name a few B&Ms that match Amazon).

Nevertheless, I agree that it's good when a company plays long ball.
 
Oh sure. Fedex overnight not fast enough for ya? Buy a fleet of planes. That makes perfect Bezos sense.
 
If UPS or Fedex was smart I would be offering Amazon a better deal before they decide to just become their own shipping company.
 
The USPS already beat em to it. And I dig the Saturday/Sunday delivery. Far less risky than hoping the thugs in your neighborhood don't swipe it while you're still at work.
 
I had an actual Amazon Delivery truck drop off stuff to me today.
 
Burticus said:
Oh sure. Fedex overnight not fast enough for ya? Buy a fleet of planes. That makes perfect Bezos sense.
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FedEx and UPS maybe can't handle the extra load that Amazon puts on them.
 
The end game is that Amazon builds their own delivery service, then when FedEx and UPS stock is down, they buy them both up and have a huge Amazon Delivery service.
They will finally buy the USPS and it will be called Amazon Postal Service, or APS.
This will happen within the next 20 years, mark my words.
 
Zepher said:
The end game is that Amazon builds their own delivery service, then when FedEx and UPS stock is down, they buy them both up and have a huge Amazon Delivery service.
They will finally buy the USPS and it will be called Amazon Postal Service, or APS.
This will happen within the next 20 years, mark my words.
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20 years is a long time, but I believe the only way it can happen is if sending letters and bulk mail dies out. People in rural areas are not going to appreciate spending significantly more to send a letter and businesses that send out circulars each week will spend tons of money to prevent it (even if it wasn't a competitor buying the USPS).
 
Amazon has a long way to go if they are planning to get into the delivery business and compete with UPS and FedEx. They have tens of thousands of delivery vehicles, hundreds of aircraft, and billions invested in infrastructure to move, sort, and deliver packages.
 
Bezos is the reincarnations of Carnegie -- he's creating a fully vertically integrated retail outfit with a cloud unit (that prints money). Wish I had invested a while back when the stock price was hella cheap.
 
They already do deliver packages to my front door. I don't see why you all think it's 20 years away. ;) Admittedly, I get more deliveries via UPS/Fedex, but lately the Amazon delivery service is popular around where I am.
 
Mystique said:
They already do deliver packages to my front door. I don't see why you all think it's 20 years away. ;) Admittedly, I get more deliveries via UPS/Fedex, but lately the Amazon delivery service is popular around where I am.
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I don't think anyone said 20 years. But it wont be over night either, lots of growing pains there. They also do not have their own drivers, as most as 3rd party contract. Amazon will probably end up with a network much like UPS/FedEx if they keep growing, but for the time being they are trying to fill spots where the normal parties are not coming through for them or is costing to much. 20 Planes is not allot in relation to how much Amazon moves every day, as I said before, this is about helping with some bottle necks at given shipping hubs, mostly for over night and Prime shipments.
 
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