As interest in e-commerce grew globally during the pandemic period, Amazon bought 11 second-hand Boeing 767-300 jets from Delta and WestJet. The e-commerce giant, which has expanded its delivery network day by day, has thus obtained its own aircraft for the first time. It is also worth mentioning that Amazon, which has preferred to rent aircraft so far, added 12 new cargo aircraft to its fleet in June.
Let us remind you that the fleet of Amazon Airlines, established in 2016, plans to have 85 aircraft by 2022. In fact, in 2019, Morgan Stanley’s AlphaWise analysis stated that half of the Amazon deliveries in the US were handled by the company.
In the same report, it was predicted that the total delivery volume would surpass UPS and FedEx in a short time. In fact, Amazon was expected to deliver 6.5 billion packages per year by 2022, while UPS was expected to deliver 5 billion packages per year and FedEX 3.4 billion packages per year.
Pandemic Effect in E-commerce & Travel Industry
Amazon can reach its destination much more easily with the pandemic’s increase in e-commerce volume and new aircraft. In fact, the damage to the travel industry due to the pandemic also has an effect on Amazon’s move. With the pandemic, airplane prices dropped, and many airlines decided to shrink and sell their assets.
Amazon, on the other hand, was quick to turn the crisis into an opportunity. The company bought 7 planes from Delta and 4 from WestJet. Under the agreement, the aircraft will join the Amazon network by 2022. In its statement, the company emphasized that this acquisition will speed up the delivery processes.
The company will also continue to use 3rd party services to manage the operation process of new aircraft. Let us remind you that the company is working with ATSG, Atlas Air and Sun Country to fly its aircraft fleet. Amazon says its recent investments will begin to be present in the transportation and logistics industry beyond delivery processes.
Amazon’s Steps in Transportation And Logistics
Zoox, the self-driving car company that Amazon acquired in June, finally unveiled its first robotax in December, after six years of complex prototypes and stealth. Let us remind you that Amazon announced the first electric delivery vehicle produced in cooperation with Rivian in October. In essence, the model, which appears as a fully electric van, was developed by the electric car manufacturer Rivian for Amazon.
The company’s investment in autonomous vehicles is not limited to this. In addition to T. Rowe Price Associates, Amazon also participated in the B series investment tour organized by the autonomous vehicle Aurora in 2019 and led by Sequoia. Let us remind you that Aurora collected $ 530 million in the Series B investment tour. In December, Uber announced that it would sell its driverless car unit to Aurora Technologies.