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Amazon a growing player in the logistics and shipping industry

There has been a recent expansion of Amazon Air to include 50 planes and several new regional hubs, including a $1.5 billion hub opening in northern Kentucky in 2021.

According to Wolfe Research, the e-commerce giant is now handling its own shipping for 26 per cent of online orders. In a December press release, Amazon said that it can “transport hundreds of thousands of packages per day” with its new “dedicated air network” and that its fleet of planes make “two-day shipping possible almost anywhere in the US.”

According to Ravi Shanker, Morgan Stanley’s North American transportation analyst, Amazon seems set to be a top logistics provider, both in trucking and in air, in the coming years. It is just a matter of how quickly the company will ramp that operation. Amazon is even acknowledging the importance of this business to investors: In its 2018 annual financial filing released earlier this month, it listed “transportation and logistics services” among its group of competitors for the first time.

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