Page 23 - ARUBA TODAY

A23
TECHNOLOGY Tuesday 7 February 2017

Amazon increasingly wants to be its own deliveryman

MAE ANDERSON hub at Cincinnati/North- For example, UPS reported
AP Technology Writer ern Kentucky International Monday that 55 percent of
NEW YORK (AP) — Amazon Airport. Amazon has long its fourth-quarter deliveries
isn’t content just being the batted down rumors that it — and 63 percent of those
“everything store.” Increas- plans to start its own pack- in December — were di-
ingly, it looks like it wants age delivery service, saying rectly to consumers, setting
to be its own deliveryman, it’s just trying to speed up records in both cases.
too. deliveries and lower costs. THE RUB
Its Monday announcement The company insists it will It’s no sure bet that Amazon
of a new air cargo hub in continue working with the will succeed in the highly
Kentucky is merely Ama- U.S. Post Office, UPS, FedEx competitive and complex
zon’s latest foray into build- and other carriers to deliver delivery space.
ing out its own shipping and packages. “It’s hard to scale up, to
logistics unit. If successful, “It’s not a big surprise,” have a network as built
the move could ultimately Cathy Roberson, founder out and mature as FedEx,
mean lower costs for Ama- In this Thursday, Aug. 4, 2016, file photo, Amazon.com boxes of consulting firm Logistics UPS or DHL,” Roberson said.
zon — and possibly faster are shown stacked near a Boeing 767 Amazon “Prime Air” Trends & Insights, said of “Amazon is still not mature.”
delivery and low prices for cargo plane on display in a Boeing hangar in Seattle. Amazon’s Kentucky an- To really go up against that
consumers. But it could also Associated Press nouncement. “By utiliz- big three, she said, Ama-
pit Amazon against pack- The moves comes e-com- NEXT STEP ing that location they can zon will have to invest “an
age deliverers like FedEx merce continues to out- On Monday, Amazon took reach anywhere in the U.S. awful lot of money in net-
and UPS. pace retail sales. Amazon the next step, announcing in two days.” works and more facilities”
Amazon has long plowed said Thursday the number plans to build a worldwide — at least double what it’s
its profits back into its busi- of items it sold in the fourth air cargo hub at a northern E-COMMERCE EXPLOSION already spending, she esti-
ness investments. In order quarter rose 24 percent Kentucky airport about 13 If Amazon succeeds in mates.
to speed up its delivery, it compared with a year miles southwest of Cincin- building out its delivery in- Still, Amazon has a history of
has invested in opening ago. Its revenue rose 22 nati. frastructure, it could ulti- developing services for its
new distribution centers percent to $43.74 billion, The nearly $1.5 billion in- mately reduce package own use and then offering
and leasing fleets of trucks. slightly missing analyst ex- vestment is expected to volume for companies like them to other customers. It
In May, Amazon leased 40 pectations. create 2,700 jobs. FedEx and UPS, Roberson built Amazon Web Services,
Boeing jets from Atlas Air Meanwhile, profit rose 36 It’s an auspicious location, said. On the other hand, its cloud computing busi-
Worldwide Holdings and Air percent to $749 million, or since UPS has a big air hub ecommerce volume is ness, for its own purposes;
Transport Services Group $1.54 per share, ahead of in Louisville and DHL has growing so fast there may that service now generates
Inc., a fleet it dubbed expectations. an international shipping be room for everyone, she annual revenue of more
“Prime Air.” said. than $12 billion.q

Toyota, Suzuki to work together

in green, safety technology

YURI KAGEYAMA and signed a memoran- spirit.
AP Business Writer dum of agreement, both “I am truly thankful for hav-
TOKYO (AP) — Japanese sides said. ing been given this oppor-
automakers Toyota and Another area for possible tunity to work together with
Suzuki, which began dis- collaboration is informa- a company such as Suzuki,
cussing a partnership in tion technology as well as which overflows with the
October, said Monday supplying each other with spirit of challenge. Toyota
they would work together products and components. looks forward to learning
in ecological and safe- The next step would be to much,” he said in a state- In this Oct. 12, 2016 file photo, Toyota Motor Corp. President Akio
ty technology — a rapidly come up with specific co- ment. Toyoda, left, speaks with Suzuki Motor Corp. Chairman Osamu
growing area in the indus- operation projects, they Developing futuristic tech- Suzuki during a news conference in Tokyo.
try. said. nology is costly, and the Associated Press
Toyota Motor Corp., the Suzuki does not have a automakers can hope to
maker of the Camry sedan, hybrid, electric car or fuel reduce costs by working crete cooperative relation- to work together with Su-
ship. I want to give this ef-
zuki,” said Suzuki Chairman
Prius hybrid and Lexus luxu- cell vehicle in its lineup. together.
ry models, and Suzuki Mo- Self-driving cars are also a Toyota and Suzuki have en- fort our fullest and to aim at Osamu Suzuki.
producing results that will Suzuki said the company
tor Corp., which specializes growing focus in the indus- couraged others to join the
in tiny cars, announced the try. partnership. lead Toyota to conclude had courted Toyota on
that it was the right thing such a partnership for
decision, following approv- Toyota President Akio Toyo- “We now stand at the start-
al by the company boards, da praised Suzuki’s pioneer ing point for building a con- for Toyota to have decided years.q