Amazon is one of the biggest technological and multinational companies in the world. Based in Seattle, WA, Amazon focuses on e-commerce, cloud computing, and digital streaming of media, to name a few. With a revenue of over 280 billion dollars in 2019 and the second-largest private employer in the US after Walmart, the company has grown by leaps and bounds.
Started in 1994 as an online bookstore, Amazon’s fortunes started to rise astronomically, and it quickly became an e-commerce giant. With the company having to deliver millions of products to its customers a month, it began to think about ways to expedite the process. The first step in that direction was starting a cargo airline operating exclusively to transport Amazon packages. Thus, Amazon Prime Air was born.
Rebranded as Amazon Air in 2017, the cargo airline is one of the biggest private carriers in the world. By next year, it is planning to have at least 70 planes, including Boeing 737 and 767. But I am sure that all of my readers must be curious about Amazon’s decision to start its airline, and what are the benefits it is getting through it? Let me shed some light on this aspect in detail.
I mentioned earlier that Amazon had to deal with millions of packages monthly. And any delay from the airlines it was using or any other factor that can affect the supply chain, ultimately, it was Amazon who had to answer to its customers. Even a few hours delay can be critical for businesses who have to deliver finished goods or raw material to their customers.
Amazon was thinking billions of dollars to other Airlines in was still not getting the service it deserved. So, this decision by Amazon to start its cargo airline was inevitable. With a lot of cash at hand, it was not a difficult decision. But they need to think hard about exactly how to go about it and whether it would be feasible for them in the long run.
Benefits to Amazon
Amazon started to reap benefits from Amazon Air as the costs were down considerably. Amazon was able to schedule flights according to their convenience and the number of packages for a particular city or state. Within a few months, everyone knew that this was a masterstroke from Amazon as far as Getting their cargo fleet was concerned. And they haven’t stopped from that moment and are aggressively expanding the airline.
In keeping up with the tradition of offering new and innovative production services, Amazon started Its drone delivery service in the US. While it was not the first company to be indulged in this, UPS also launched its service. In fact, it is the first service certified by the FAA’s part 135 standard certification. The certification is about giving UPS full authority to operate remotely controlled drone airlines, with an unlimited number of drones able to fly at night, too.
So, what is Amazon doing about it as it sees itself as the industry leader in offering new technologies to its customers? Surely, being a leader in several services like Amazon Web Services offering cloud computing and web hosting, everyone was anticipating that Amazon would offer a fitting reply to UPS Flight Forward, its drone delivery service. So, read on as I discuss this aspect now.
Amazon’s Delivery Drone
In 2019 in Las Vegas, Amazon showed off its delivery drone service for the first time. An ingenious hexagonal model, it doesn’t look like the best-designed drone or an aesthetically perfect one. But, performance-wise, it is amongst the finest, if not the best one. The drone has multiple sensors, coupled with a variety of machine learning models to keep its flight safe and secure.
It is the next-generation technology in drones as it is not your average drone that you fly for fun. With a flight distance up to 15 miles and the ability to carry packages up to five pounds, it was surely touted to be a revolution. And since its operation has started, it has offered everything it is promised to its customers.
A Helping Hand in the Testing Times
During the current Coronavirus epidemic, the effectiveness of drones has increased as regular, and cargo flights were suspended across the world. Amazon used its drones to deliver hundreds of thousands of packages during the last few months and made sure its customers got their deliveries on time. Surely, the share price of Amazon rose astronomically. From a low of 1676 dollars on March 12th before the lockdown, it ended on 2675 dollars, as on 19th June 2020.
With its drone delivery, Amazon has shown the world that when it comes to offering new technology and service, there is no rival that can outperform them. As they are developing the drones completely in-house, including its hardware and software, there is no chance that its technology can leak out. That’s one reason why we are anticipating new, groundbreaking technologies in this regard from Amazon in the coming few years.
Amazon has changed the face of e-commerce across the globe in the last decade. From the high-profile acquisition of new and upcoming companies to startups, just like Souq.com from UAE and Junglee.com from India, it never stopped. It made sure that it had everything under its belt and virtually tried to leave nothing to the competition. Don’t be surprised if you see the company venturing into web design and development and here, too, become the top web design companies in Dubai, for example.
As technology is evolving fast, I am sure that in the coming few weeks, there could be some aspects that can be added to this blog. You think you can add something valuable to this blog, and that can be interesting for my readers, you are welcome to this concern.
If you have any questions in mind or any query about this blog, you are welcome to speak up, and I will be more than happy to answer your questions. For any type of feedback too, please use the comment section below.