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UPS, FedEx, and other cargo delivery companies hear footsteps from Amazon

UPS jet at Louisville International Airport

With its massive package sorting hub facilities around Louisville International Airport, United Parcel Service is one of Kentucky’s largest employers. About 11,000 people work for UPS in the Louisville area.

With the burgeoning growth of Amazon’s Prime Air fleet, much of which is directed toward Northern Kentucky’s Cincinnati airport, the next few years could could create incredible headwinds for UPS, Fed Ex, and other package delivery companies.

Amazon would love to cut its operating costs by flying their own packages instead of paying UPS and others to do it for them. Amazon, the second most valuable company in the world (trailing only Apple Inc), is putting together its own air force to dominate yet one more business market.

Flight Tracker shows an Amazon jet bypassing Louisville to get to the northern Kentucky airport, December 23, 2018

Since permits and aeronautical complications have slowed the pursuit of drone delivery, Amazon has instead built its ground fleet through a franchisee system in many areas of America. UPS, FedEx, DHL, and others have enormous ground fleets but Amazon is farming out work to entrepreneurs so they can leapfrog the other companies.

One way or the other, Amazon will go toe-to-toe to takeover any business that costs it money. If you own a cardboard box factory, get ready to make a deal. You’re next.

Amazon Prime Air Boeing 767, photo by Chad Slattery
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