Amazon could be rolling out its own private delivery network to make more same-day deliveries and have more control over shipping expenses (which grew 29% last year), The Wall Street Journal reports.
The company is currently testing the use of Amazon trucks driven by Amazon-supervised contractors to bring customers’ packages “the last mile” to their doorsteps in San Francisco, Los Angeles, and New York, WSJ’s Greg Bensinger reports.
Right now, UPS, FedEx, and the U.S. Postal Service deliver an overwhelming majority of Amazon’s packages. Last Christmas, shipping delays caused Amazon to have to offer many affected consumers $US20 credits. With its own trucks, Amazon would have much more control, like offering deliveries late at night or early in the morning when traffic is lighter.
Amazon apparently began to roll out its delivery network late last year, with packages labelled “AMZL” and “AMZN_US,” codes designating the company’s in-house delivery network.
Amazon also recently published the following job posting on its site:
Amazon is growing at a faster speed than UPS and FedEx, who are responsible for shipping the majority of our packages. At this rate Amazon cannot continue to rely solely on the solutions provided through traditional logistics providers. To do so will limit our growth, increase costs and impede innovation in delivery capabilities. Last Mile is the solution to this. It is a program which is going to revolutionise how shipments are delivered to millions of customers.
The idea of same-day delivery with its own trucks isn’t new for Amazon: Right now, the company’s AmazonFresh grocery delivery service can bring customers in Seattle, San Francisco, or Southern California fresh produce and other products the same day that they order.
Amazon declined our requests for comment.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.