Amazon CEO Jeff Bezos posted a video of himself behind the wheel of a tractor on Tuesday, when the e-commerce giant is starting to build on a $ 1.5 billion cargo facility in Kentucky.
| Ticker | Security | Last | % Chg | |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 1,840.12 | +17.44 | + 0.96% |
The company invests the money in a 3 million square foot air hub, located in Cincinnati / Northern Kentucky International Airport, where the company held a groundbreaking ceremony for on Tuesday. The project was first announced in 201
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Amazon has a 50 year lease for about 900 acres at the airport – where it handles its own shipping to reduce costs and get packages to customers faster.
Bezos said on Tuesday that the company will move Prime shipping from two days to one.
Amazon is expected to lease 40 Boeing 767 aircraft. About 2000 people are expected to work at the new facility.
The facility is scheduled to open in 2021.
Amazon also opens a new regional air hub at Fort Worth Alliance Airport.
Amazon's investment increases speculation that one day it could compete directly with other bidding services such as UPS and FedEx.
| Ticker | Security | Last | Change | % Chg |
|---|---|---|---|---|
| UPS | UNITED PARCEL SERVICE INC. | 99.76 | + 0.41 | + 0.41% |
| FDX | FEDEX CORPORATION | 171.86 | -0.44 | -0.26% |
The groundbreaking ceremony comes as a race for faster shipping heats. Retail rival Walmart on Tuesday announced that it will gradually begin offering all online buyers the opportunity for free delivery today on orders of $ 35 or more.
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Moody's analyst Charlie O & # 39; Shea wrote in a note on Tuesday that Walmart continues to have a "meaningful advantage" over Amazon in the form of 5,300 store locations.
"In addition to giving consumers access to the same day via the online store, these stores reinforce a world-class proprietary distribution network, as they are also potential shipping points," wrote O & # 39; Shea.
