An Amazon new air hub is set to launch in 2021 as part of Amazon’s commitment to accelerated shipping for customers.
The move highlights Amazon’s effort in expanding their logistics capacity to support their fast delivery promise.
Amazon today announced the planned introduction of the new air hub located in Hebron, Kentucky at the Cincinnati/Northern Kentucky International Airport.
In 1999, Amazon first set roots in Kentucky when they opened two fulfilment centres. Kentucky is currently home to 14 Amazon fulfilment and sortation centres, one customer service centre and two Whole Foods Market stores. Amazon have invested more than $8 billion in the state and created more than 12,500 full-time jobs.
Amazon’s logistics journey
This February saw Amazon listing “fulfilment and logistics” companies as rivals that present “intense competition” to the marketplace. The marketplace announced their increasing logistics status in their securities and exchange commission (SEC) annual report.
A week earlier, Amazon saw their competitor, FedEx outlining their position as the leader in the delivery sector. FedEx pointing to Amazon’s lack of “logistics service infrastructure, capabilities, technology and knowledge” which would be “needed to compete.”
The industry are now seeing Amazon accelerating their last mile delivery capabilities faster than their logistics rivals. Earlier this month, Amazon announced the launch of two new distribution centres in Kegworth, East Midlands and Bristol. In April, Amazon said they will invest in $800 million to halve their delivery speed for US customers. The move created a ripple effect across the industry. It saw Walmart announcing a couple of weeks later a one-day delivery promise “without a membership fee” – alluding to Amazon’s next day which requires customers to pay £79 Prime membership fee, for the whole year, to be eligible for the accelerated delivery promise.
The competition seems to add more fuel in Amazon’s fire as they continue to hone their last mile service.
