Amazon is the world’s largest e-commerce industry and not to mention that it led by none other than the world’s richest man, Jeff Bezos. The company has many competitors and is always under constant pressure. Now the company is trying out a new technique to ruin more profits. The company is now trying to handle its deliveries to rural areas in the US. Initially, the company used to rely on the US Postal Service.
The e-commerce industry used to rely on shipping hubs in rural areas under its plan called “wagon wheel.” Amazon’s wagon wheel station provided support for smaller shipping facilities to carry out amazon’s company deliveries.
As to when this new program will be launched is not made clear as of yet. But Amazon executives reported that they would soon be putting money on the company’s new delivery service. After revealing its fourth-quarter earnings, the company announced investing in its delivery infrastructure.
Amazon’s chief financial officer Brian Olsavsky stated, “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.” According to sources, the company plans on increasing its fulfillment and logistics square footage by 50 percent from last year. The company revealed that it has already spent around $30 billion on leases and other capital expenditures this year.
The company officials just released a statement saying, “incredible employees and partners come together to deliver for our customers—every day and throughout the holiday season. It includes offering fast, free, and convenient delivery options for customers provided by our transportation partners and our internal delivery teams.”
However, Amazon did not provide information to confirm or refute the claims of it ditching the US postal service. As to how its new delivery system and infrastructure works remain to be seen.
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