Financial news and media company Bloomberg reports that Amazon is planning to set up a global shipping and logistics company, which would pose a direct threat to FedEx and UPS. The super secret plot was brought to limelight by Bloomberg’s Spencer Soper, who describes the Amazon’s plan as “revolutionary system that will automate the entire international supply chain and eliminate much of the legacy waste associated with document handling and freight booking.”
The project, which Amazon refers to as Dragon Boat aims at initiation of a new business namely “Global Supply Chain by Amazon.” The leaked out internal documents dated as early as 2013, says that the company wanted sellers to ship their good through Amazon avoiding the current operators like DHL, UPS or Fedex. There has been reports since the last couple of years that Amazon was trying to create a shipping company as a part of expanding its logistics operation. The company in its latest 10-k named itself as a “transportation service provider.” Amazon has reportedly acquiring delivery flights, truck trailers and freight ships during the last couple of years.
Speaking on the rumors, Amazon’s CFO Brian Olsavsky said that the company was just supplementing its shipping partners and do not want to replace them with a fully owned logistics business. Colin Sebastian of Baird Capital said that this could not be true as Amazon might be buying time to make its own in house logistics team and certainly would replace the current shipping partners like UPS and FedEx.