Amazon Starts Its Own Fleet Of Trucks
When people searched for truck driving jobs, the names that appeared on search engines included UPS, FedEx, Wal-mart etc, but never would they have though that they will soon be seeing Amazon trucking services as an option. But this is about to become reality.
When the announcement of Amazon’s own fleet trucks via branded semi-trucks broke, shudders ran through the trucking industry especially the ones w who had contracts with Amazon and delivered millions of Amazon packages.
Although all these efforts initially will target managing of merchandise in Amazon warehouses, Amazon is seriously considering the direct mode of delivery of its products to its customer termed as the last mile project.
When asked what made them to think about their own shipment trucks, Mr. David Parker said, “People are calling at 3 a.m., at 5 a.m., saying they need 5 trucks, 10 trucks or 12 trucks. It’s a moving target,” “The model is, ‘I need trucks. I don’t know where they’re going, I don’t know when the load’s going to be ready, [but] I need trucks.’”
Where many companies bit their nails about if it was just a rumor, others confronted the threat in a very bold and straight-forward manner. One of such companies who brushed off the threat claiming, “They had plenty of freight to go around” were the Covenant Transportation Group and Swift Transportation Co.
“Amazon’s trailer purchases are having little to no impact on our truckload segment,” was a statement by the spokesperson of Swift Transportation Co. in a conference call. He further continued, “We currently operate several different facilities for Amazon across a variety of our suite of services and are excited about our potential growth with this partnership.”
Covenant and Swift Transportation Co. has been in a close contract with Amazon for several years now. Mr. Joey Hogan the Covenant’s chief operator on 26th January 2016 told the world that this decision should not be taken as a threat. In fact it will only strengthen the trucking industry, believing that this decision by Amazon will only increase their business.
“They’re growing so dramatically that it’s hard for anybody to keep up with what they are doing in the marketplace. They need every truck they can get their hands on,” said Joey Hogan.
But is this threat really a threat or a blessing in disguise for the shipment industry by the biggest e-commerce giant, only time will tell. Meanwhile it is a big step by Amazon and its impacts will certainly show in the company’s financial reports in the coming years.
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