Amazon (AMZN) Orders Large Trucks to Strengthen Deliveries
Amazon AMZN has been ramping up delivery efforts. Reportedly, the e-commerce giant has ordered approximately 2,300 delivery trucks to support the delivery service program.
The latest move bodes well for the company’s persistent focus on supporting the growing demand for its services and further strengthening delivery services.
Amazon.com, Inc. Price and Consensus
Why This Move?
Amazon has been making sincere efforts to boost the delivery system, especially after one of its major competitors Walmart WMT has been gaining momentum, and expanding e-commerce capabilities as well as same-day delivery capacity.
In recent months, the company has witnessed a flurry of orders driven by customers’ unwillingness to visit offline stores on fears of contracting the novel coronavirus. Although its delivery capacity remains constant, overflowing orders have been slowing down delivery.
This remains a major concern for the e-commerce giant as it might lose customers due to delivery delays in this coronavirus-induced crisis. Last month, the company had to suspend the popular Amazon Shipping for non-Amazon packages in a bid to prioritize Prime customers. Gradually, the retail giant has returned to normal operations but Amazon Prime has been delayed until October.
Therefore, the company is making all efforts to offer timely deliveries in order to retain customers on the online shopping platform.
Further, it is making strong efforts to expand delivery capabilities in order to sustain customer momentum in this crisis situation.
Amazon’s strengthening of delivery services is noteworthy.
We note that the company has recently taken an initiative to bolster the Same-Day Delivery program by making same-day delivery service available in the cities of Philadelphia, Phoenix, Orlando and Dallas for Prime members.
Further, the service in these cities has been equipped to deliver 3 million items across various product categories. It has also built mini-fulfillment centers, which are first-of-their-kind buildings.
Notably, the new facilities — located closer to customers — are likely to help Amazon reduce the number of hours taken to deliver orders via same-day delivery services.
In addition to this, the company’s one-day shipping and many other fast delivery services remain noteworthy and are likely to instill investor confidence.
Additionally, the company is creating a relief fund worth $25 million in order to help independent delivery drivers and seasonal employees amid coronavirus scare.
All the above-mentioned strong endeavors reflect this Zacks Rank #2 (Buy) firm’s commitment toward the betterment of customers, which in turn is likely to drive customer momentum.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.