Amazon is one step closer to successfully competing against courier companies with its latest plan to invest more than a billion dollars to an air cargo cub. The e-commerce company is betting a huge amount of money in creating a hub for its future fleet of planes.
As reported by Tech Crunch, Amazon has set aside $1.5 billion as part of its bid to become a logistics and shipping business. The plan appears to be a natural extension to the e-commerce company's business of selling different products online.
The location of the $1.5 billion air cargo hub project will straddle Cincinnati and Northern Kentucky. It is not clear yet whether the air cargo hub will fall under the jurisdiction of Cincinnati or Kentucky. However, Amazon seems to be confident that the project will bring at least 2,000 jobs for Americans.
The air cargo hub is expected to house at least 40 cargo planes. Engadget reported that the e-commerce giant is anticipating more than 200 flight departures and landings daily in the new hub, as disclosed by Northern Kentucky International Airport chief Candace McGraw.
The high number of flights that is expected to go in and out of the hub seems to be proof enough that Amazon plans to become a logistics and shipping business. The expansion would reduce the e-commerce giant's reliance on other logistics and shipping companies like UPS and FedEx.
Amazon currently sends the products it sells to customers via UPS, FedEx and other available logistics and shipping companies depending on the location. However, the e-commerce giant wants to expand its reach and ultimately get some market share in the logistics and shipping business. The plan could threaten the livelihood of logistics and shipping companies.
Jobs & Hire previously reported that the online retailer is hoping to create more jobs in the United States. With the 2,000 jobs from the air cargo hub, it looks like Amazon is going to keep its promise.