Amazon's logistics empire faces toughest challenge yet during COVID-19 - Business Insider

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Amazon is expanding its logistics empire like never before to prepare for this holiday season — and it still may not be enough

Amazon has added "2,200 delivery trucks, further reducing dependence on other carriers, which are anticipating delays and increasing surcharges in November and December," according to a report from consulting firmAn Amazon spokesperson said its delivery service partners operate more than 50,000 branded last-mile delivery vans, and that the company has leased 12 Boeing 767-300 cargo jets, bringing its fleet to more than 80.

"No matter how much Amazon is adding, they still have to rely on other people to provide drivers and trucks that are in short supply," said Jindel, the consultant for SJ Consulting Group.

Amazon has spent billions this year on adding last mile and delivery capacity, as well as increasing inventory closer to customers, a spokesperson told Business Insider.Jindel said shippers, sellers, and e-commerce companies alike have been trying to train consumers to shop earlier this year to avoid a backlog at the end of the year, and Jindel said that consumers are increasingly valuing predictable shipping times over speed.

 

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