Amazon's Global Acquisitions Mean Bigger Delivery Network

If there's any company that could spearhead and revolutionize where e-commerce is going regarding fast delivery, it would be Amazon. The e-retail leader has made huge strides with same-day delivery, even making it free. Now with Amazon's most recent business move, it is going beyond just free same-day delivery, but much more.

Retail Dive recently released an article discussing how Amazon's recent acquisitions and large asset investments indicate bigger plan for the retailer's future. Amazon has plans to wholly acquire French delivery company Colis Prive. Amazon already owns 25% of the company, therefore, an initiative had already begun with doing business there. In 2014, the retailer also acquired the right to purchase 4.2% of UK delivery company Yodel. Also, it purchased thousands of semitrailers in the US and contracted trucking companies to haul them.

When these types of acquisitions occur, it shows that Amazon could be after a global establishment of itsdelivery system. Since it's global, Amazon needs global delivery system to go right along with it. It is stretching itself to be able to handle delivering the way that Amazon wants to perform its' supply chain and logistics, not being dictating by large carriers' pricing, such as FedEx and UPS. The semitrailer expansion in the US makes sense as well, enabling transporting from its' numerous distribution centers. With 50 fulfillment centers added to its' fire power around the world within the last four years, one can only believe it is duplicating itself worldwide also.

“They have the opportunity to disrupt this market and generate a lot of revenue,” stated Colin Sebastian, Robert W. Baird & Co. analyst, to the Seattle Times. With its' own delivery network for packages, the retailer will begin to give big name carriers a run for their money. Retail Dive mentioned how Amazon will control more of its' fulfillment costs, and as a result, it will begin to generate the savings in this area they are looking for.

Currently in the US, Amazon has been launching same-day delivery in multiple major US cities. Last year, Amazon rolled out free same-day delivery in 14 metropolitan cities the US, beginning with California cities in the Southland, including San Fernando Valley to Irvine, as well as the Redlands and Moreno Valley in the east. The others would be cities such as the San Francisco Bay Area, Baltimore, Boston, Dallas-Fort Worth, Indianapolis, New York, Philadelphia, Phoenix, San Diego, Seattle-Tacoma, Tampa Bay, Atlanta, and Washington DC as well.

Amazon may be seeking after performing its' own deliveries, yet currently it is also utilizing partners to deliver for them in some cities. Other retailers that aren't as robust as Amazon, can also partner with a Same-Day Courier like A-1 Express to help them expand and offer same-day delivery as well. The Miami Courier has a number of retailers that it develops same-day solutions for, as well as quick implementation nationwide.

Reference: 1.12.16, www.retaildive.com, Daphne Howland, Amazon's acquisition of delivery company hints at larger ambitions

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