Amazon Leases 40 Jets, Tests Drones to Meet Demand from Prime Members

In August, Amazon unveiled its first Prime Air cargo jet, a Boeing 767, as part of its new fleet of planes that will help

Subscription News: Amazon Leases 40 Jets

In August 2016, Amazon unveiled its first Prime Air cargo jet, a Boeing 767, as part of its new fleet of planes that will help online retailer Amazon meet its two-day shipping promise to Prime members, reports Recode. That fleet has grown to 40 jets leased by Seattle-based Amazon.com, says Reuters in a new report.

 Tests Drones to Meet Demand from Prime Members

Source: Amazon

According to the report, the cargo planes are flying with nearly-full, lightweight loads to at least 10 U.S. airports including Seattle, Tampa and Charlotte. The cargo is then unloaded and distributed from nearby fulfillment centers and warehouses to Amazon customers. The report also said that because of Amazon’s new planes, it is eating into business from FedExp and UPS. Amazon can now fly larger items, particularly bulky items, in its own planes.

Reuters reports that Amazon added the planes to help it meet customer demand, not replace its current means of distribution. Part of the increase in demand is caused by new delivery promises made by Amazon. In addition to free two-day shipping to Prime members, Amazon promises shorter delivery times through services like Prime Now which offers free two-hour delivery in certain zip codes and one-hour restaurant delivery from Amazon Restaurants in certain cities (Manhattan, Brooklyn, Seattle,  Dallas, San Francisco, San Jose, Oakland, Los Angeles and more).

Subscription News: Amazon Leases 40 Jets

Source: Amazon

 Tests Drones to Meet Demand from Prime Members

Source: Amazon

In addition, Amazon delivered its first package via drone on December 7 as part of a beta test in the U.K. Amazon proudly shares its maiden voyage in a video on its website showing how a package less than five pounds is loaded onto a fully-autonomous drone that then delivers the package from an Amazon fulfillment center directly to the customer’s home in Cambridgeshire, England in 30 minutes or less. Amazon is currently testing this with two customers and will soon expand to dozens of customers within a short distance of their U.K. facility.

Insider Take:

These days it isn’t enough to be cheaper or faster than the competition. You have to be both, and you have to offer customers something they can’t get anywhere else. Amazon does that time and again with its Prime membership program. Subscribers pay $99 a year to get free two-day shipping and a host of other services including Prime Video, Prime Music, online photo storage, a Kindle readers’ lending library and much more – and Amazon is stepping up the shipping service to deliver packages in short a time as 30 minutes.

It seems unlikely that anyone can compete with what Amazon is offering to its members, not even retail giant Walmart. Every week it seems Amazon is testing something new or different to not only better serve its members, but to retain their loyalty and attract new subscribers with new bells and whistles. We don’t know how they do it, but we are glad they are. We love their products, services and capacity for innovation, but even more than that, we love that they set the bar high for all subscription companies.  

 

 

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