- Amazon CFO Brian Olsavsky has made it clear that the retail giant is perfecting its in-house logistics capabilities to do more than just make up for when FedEx and UPS aren’t able to deliver.
- Amazon Air and other in-house logistics networks are quickly expanding.
- It’s a good way to manage the company’s massive delivery expenditure.
And it’s not just for when FedEx and UPS, the world’s top package shippers, can’t make the space, Morgan Stanley analysts wrote to investors on Monday. During Amazon’s most recent earnings call, the Seattle-based retail giant was more revealing than ever on its strategy to build up logistics.
In 2018, Amazon expanded two-day shipping availability to “almost anywhere” in the US with its additional Amazon Air capacity. Free one-day shipping is now accessible for the “majority of Prime members in the US.” Three more Amazon Air gateways are underway in Ohio, Illinois, and Texas.
Amazon CFO Brian Olsavsky told analysts on Thursday that the retail giant will “continue to expand our Amazon logistics and our delivery capability” in 2019.
Olsavsky highlighted that in-house deliveries were cheaper.
“(W)e have great third-party partners as well in the transportation space,” Olsavsky said. “What we like…