Amazon continues to cut out the middle man

By Cate Hull

It’s no coincidence that two of the top 10 largest companies in the world are e-commerce companies – Amazon and Alibaba.

The brick and mortar business model is going the way of the dinosaur. Even companies with brick and mortar foundations have learned that e-commerce is where the future of business lies.

Which is why it came as no surprise when Amazon announced it was expanding its Amazon Air fleet to 50 planes now delivering cargo to more than 20 airports to make its two-day shipping possible in the U.S.

The company’s expansion of its partnership with Air Transport Services Group, Inc. (ATSG) by leasing an additional 10 aircraft adds to the previously leased 40 Boeing 767 freighter aircraft in 2016, 20 of those with ATSG, all of which are now serving customers in the Amazon Air network.

Amazon Air’s operation launched in 2016 supporting package delivery to the rapidly growing number of customers who love fast delivery, great prices and vast selection. With advanced algorithms and software used for capacity and route planning, the Amazon Air operation can transport hundreds of thousands of packages per day.

“Our customers love massive selection and fast delivery, and the Amazon Air capacity we are building enables Prime delivery speeds for customers from Seattle, Washington to Miami, Florida,” said Dave Clark, senior vice president of worldwide operations at Amazon. “By expanding the Amazon Air network through our partnership with ATSG we’re able to ensure we have the capacity to quickly and efficiently deliver packages to customers for years to come.”

Amazon came to Australia in 2017 and is changing the marketplace.

Amazon has launched several initiatives to ensure fast delivery speeds and supply chain capacity for its customers, including its Delivery Service Partner program, Amazon Flex, the company’s mobile application that allows individuals to sign-up, be vetted, and begin delivering for Amazon, a dedicated network of over 10,000 trailers to increase trucking capacity and, now, the expanded fleet of air cargo planes.

These efforts join Amazon’s robust worldwide network of fulfillment centers where the company uses high-end algorithms, robotics, machine learning and other technological innovations to increase delivery speeds for customers. Amazon is now bringing the same technological expertise to efforts in the transportation space to increase shipping capacity for customers.

Amazon has two fulfillment centers in Australia with another planned; one in Singapore; 15 in China; 50 in India; 22 in the United Kingdom; and 139 in the United States.

As a freight and distribution company, FreightExchange is part of the future of the freight and logistics world. Our FreightDesk platform creates a more efficient way for shippers and carriers to move goods.

Cate Hull is the CEO of FreightExchange, a freight and logistics company based in Sydney.


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