1. Amazon Air Shifting To Model Similar to FedEx and UPS
According to a report from the Chaddick Institute for Metropolitan Development, Amazon has increased flights at its larger hubs at a faster rate than other locations. In recent years, many thought Amazon Air was pursuing a network of mini-hubs. The report’s data signals the company is moving in a different direction.
The more hub-centric approach reduces reliance on point-to-point flying and better compliments the company’s ground network. The model is very similar to that of FedEx and UPS.
2. Wing Expanding Drone Network to Deliver Millions of Packages by 2024
Wing is expecting its drone delivery network to deliver millions of packages at a lower cost than ground service by mid 2024. The delivery service is owned by Alphabet, Google’s parent company, and is driving this growth with an automated logistics software that manages the network and allocates resources for high-volume delivery activity. Over the next year, the company will roll out new network capabilities and expand into new locations worldwide.
The drones support curbside pickup, and can integrate into retail and restaurant operations. According to Wing CEO Adam Woodworth, “the economics of drone delivery improve dramatically with scale,” meaning that scaling operations will be crucial to drones becoming a viable option to challenge other delivery services.
3. Walmart+ Closing Gap on Amazon Prime With Wealthier Americans
Walmart+ is chipping away at Amazon Prime’s lead in the subscription-based eCommerce market, particularly with wealthier Americans.
One year ago, 70% of American households making over $150,000 a year subscribed to Amazon Prime. Now, that number is 77%. However, in the same time period, Walmart+ subscriptions increased from 13% to 28% of households in the same demographic. While it’s doubtful they’re taking many subscribers away from Amazon, they’re proving to be an attractive addition to consumers who can afford multiple subscriptions.
A major selling point for Walmart is that 90% of Americans live within 10 miles of a Walmart store, meaning that for items in-store, their same-day delivery options can rival Amazon’s.