World News

Amazon’s New Service

Amazon is exploring the opportunity of taking its shipments into their hands when it comes to rural areas. As of now, Amazon still relies on the US Postal Service for deliveries. 

 

The company would employ shipping centers in rural regions following a program called “wagon wheel.” These departments would aid lesser shipping hubs. To this date, various labor advertisements that state “a new delivery business that will support Amazon’s rural communities” have been removed. 

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However, the launch date and location are yet to be announced. Amazon officials declared last week that it anticipates continuing financing its transportation services. In fact, fulfillment expenditures grew “57% over a year in the third quarter to $15 billion” (Amazon Financial Report, 2020). The company’s chief financial officer, Brian Olsavskly, announced that Amazon’s fulfillment and logistics square footage would rise “50 percent from last year,” which means that the company has already spent about $30 billion on contracts and other investments this year.  “I think at this point, we are not trying to cut it close, and we are erring on the side of having too much capacity,” asserted Olsavskly. 

 

This year, The Washington Post published that Amazon had made “$1.6 billion in profit and $3.9 billion in revenue for the postal service in 2019, with the postal service delivering 1.54 billion Amazon packages or around 30% of Amazon’s total volume for 2019”. These numbers are expected to increase for years to come as the pandemic has made people dependent on deliveries. 

 

Amazon has not affirmed or dismissed the report. When an inquiry was made regarding the report, a representative declared that Amazon’s “incredible employees and partners come together to deliver for our customers—every day and throughout the holiday season. This includes offering fast, free, and convenient delivery options for customers provided by our transportation partners, and our internal delivery teams.”

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