Amazon Cargo Steps into European Market

Posted by Diane McCarty
3
Jan 26, 2016
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Coming to France Is a Huge Step by World Renowned Amazon to Become Delivery Company of Its Own

For last few months the news of Amazon buying starting its own air cargo service or delivery system has stirred the cargo markets around the globe. Using unmanned drones to make door-to-door deliveries within 30 minutes was the first initiative taken by company and then we heard about a deal where Amazon bought same Boing planes to make deliveries of its air cargo to India and all other major countries and cities across the globe.

Amazon cargo

Now another huge step has been taken by the e-commerce company to capture the European market. Yes! The European market and to do so, the company has planned out acquiring Colis Prive. Since 2014, Amazon had a 25 per cent interest in this French package-delivery company but now, by the first quarter of the year, the buyout of the remaining 75 per cent is expected.

Although Colis Prive is not as big as DHL, FedEx or the UPS in size but still, it is playing a vital role in delivering packages for Amazon. Acquisition of Colis Prive will be Amazon’s biggest step to enter into the logistics business and will put it head-to-head with above mentioned logistic companies.

Cargo Box

Other significant steps that Amazon has taken during past couple of years are: acquisition of Yodel’s 4.2 per cent. It is a U.K.-based company which delivers parcels. Then in the U.S., the company made a significant increase in its cargo truck fleet. According to an analyst, the global fulfilment market which includes warehousing and shipping is a US$400 to US$450 billion business and the way Amazon is developing its delivery service, it is quite possible they are preparing for global needs along with their own.

In 2013, Amazon spent $6.6 billion, in 2014, more than $8.7 billion on deliveries so if it creates its own in-house logistics network, it will be able to cut down these costs significantly. An example of their drastic thinking is establishing AWS, their cloud computing subsidiary, to run their business flawlessly. Cargo To India always keep in mind cost and reliability factors for individual customers in general and industrial clients in particular, we will bring you the lowest shipping rates for freight forwarding by air or sea.

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