Inc. could take as much as a 30 percent stake in a large cargo carrier, its second such deal this year as the e-commerce giant seeks to control more of the delivery process, from factories where goods are made to the doorsteps of customers.
As part of the agreement, Atlas Air Worldwide Holdings Inc. will acquire and operate 20 Boeing 767-300 freighters for Amazon, according to a statement from the airline Thursday. The deal mirrors a March transaction with Air Transport Services Group Inc. and would double Amazon’s cargo-hauling fleet to 40 Boeing 767 freighters.
The Seattle-based retailer is moving quickly to build up its delivery network, aiming to reduce its dependence on United Parcel Service Inc. and FedEx Corp. as it expands its Prime membership service that delivers some orders in as little as one day.
In light of the company’s aggressive moves, the question for some analysts is how much Amazon intends to encroach on the package carriers’ turf.
“The debate right now is where will Amazon stop and if this is meant to complement or substitute the legacy parcel carriers,” Morgan Stanley analysts Ravi Shanker and Brian Nowak wrote in a note. “We believe UPS/FDX need to at least keep one eye on the rear-view mirror.”
On an earnings conference call last week, Amazon Chief Financial Officer Brian Olsavsky reiterated that Amazon was looking to supplement, not replace, the capacity of its delivery partners. Kelly Cheeseman, an Amazon spokeswoman, declined to comment beyond Atlas’ statement. Bloomberg News
