Amazon launches its own logistics service, competing with industry giants

Amazon announced on Monday the launch of a logistics service independent of its e-commerce platform, a move set to shake up the major players in the sector. Having initially relied on transport and delivery specialists, Amazon has gradually developed its own supply chain since the mid-2000s to better control its costs. Today, the Seattle-based group owns a fleet of tens of thousands of vans, more than 80,000 truck trailers and 100 cargo planes.

It also controls a network of more than 350 logistics centres globally and can manage the transport of goods from the point of production to final customer delivery anywhere in the world. Until now, this system was entirely dedicated to products sold on its e-commerce platform.

By creating a new subsidiary, Amazon Supply Chain Services (ASCS), the group is now offering its infrastructure to all businesses. "The supply chain is not just a function within Amazon, it is essential to an exceptional shopping journey," said Peter Larsen, vice president of ASCS, quoted in the press release.

"We believe we can offer the same cost optimisation, reliability and speed to Amazon's customers," he affirmed. ASCS already has several clients, including hygiene products specialist Procter & Gamble and industrial conglomerate 3M. This strategic development places Amazon in direct competition with the heavyweights of the letter and parcel delivery industry.

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