Amazon.com, Inc. (NASDAQ:AMZN) has been gradually launching free one-day delivery for months. IN its recent earnings call, CFO Brian Olsavsky reported that the firm would substitute two-day delivery with one-day delivery, but indicated that one-day delivery would take a substantial amount of time to accomplish. He also stated that some zip codes can enjoy this benefit before others.
Amazon has a fulfillment center footprint of over 200 million square feet. With this kind of setup, the company has been steadily growing its shipping abilities. In the month of May, they made it to a $1.5 billion air service hub at Northern Kentucky International Airport and commenced paying people as much as $10,000 to leave their jobs and launch a delivery firm.
In its recent blog post, Amazon reported that Prime Free One Day is achievable because they have been growing their network for more than 20 years. This has allowed them to achieve a world-class consumer experience supported by great technology and incredible employees. The company has strategically expanded its network in the United States to include 40 package sortation centers, 110 fulfillment centers, 20 air gateways, and 100 delivery stations, all to be closer to their consumers.
Despite scaling on these plans, shares of Amazon traded deep in red, in the last trading session. The weakness in the stock was a result of rumors about an upcoming probe into the firm for an anti-competitive business approach.
The representatives of the U.S. DOJ Antitrust Division and the FTC have been in discussion about a division of labor in probing several tech firms, Apple Inc. (NASDAQ: AAPL), Alphabet Inc (NASDAQ: GOOGL) and Facebook, Inc. (NASDAQ: FB) among them.
As per the latest buzz, the FTC will be probing into these questions at Facebook and Amazon. The DOJ will look after Google and Apple. Antitrust concerns seem to remain at the core of the U.S. government’s actions in all four cases. As of now, there is no update as to what the two agencies are planning to do next.