Forget Drones: Amazon Is Going to Fly Its Own Planes
The world’s largest online retailer says it’s going to operate its own air cargo network in the US, a move that points to its larger ambitions to build out a comprehensive factory-to-doorstep delivery system to serve its customers. Amazon signed a five- to seven-year lease with Ohio-based Air Transport Services Group for twenty Boeing 767 freighter aircraft, the company says.
The move is the latest in Amazon’s ongoing effort to reduce its dependence on other shippers in favor of building out its own sprawling logistical infrastructure. The company sees this streamlining as especially beneficial to its growing ranks of Prime members, folks who sign up for Amazon’s $99-a-year subscription service to get fast, free shipping and other benefits, like unlimited video streaming. Current analyst estimates put the number of Prime members at 40 million to 60 million worldwide, according to The Wall Street Journal. In its last quarterly earnings report, meanwhile, Amazon revealed that paid Prime membership had increased 51 percent worldwide and 47 percent in the US in 2015.
