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Amazon is about to add another trophy to their cabinet - the largest US package delivery company. The company estimates that they will deliver more packages in the US by the end of the year than any other company. Amazon currently has over 40 000 trucks, 30 000 vans, 70 planes, and an airport or two in their arsenal.
This title is even more impressive because Amazon has grown their network in less than a decade, compared to a business like FedEx, founded in 1971.
Logistics is a capital intensive and difficult business. It is why many companies outsource this function. In e-commerce, margins are already razor-thin, so controlling your distribution network helps to buffer profits. There is also the control aspect, Amazon can ensure that their customers get their parcels on time, particularly around the very busy Christmas period.
Well done Amazon. I'm glad to be a shareholder and not a competitor.
