Amazon has already changed the transportation industry (See our article from March 3, 2016), but what if Amazon wants to monopolize the entire supply chain? For those who make their income in trucking and transportation Amazons movements need to be closely monitored.
Look at Amazon’s activities in the nation’s capital. Amazon spent about $9.5 million on lobbying in 2015. Although other tech companies spent more Amazon’s spending represented the largest spending increase, with 60 lobbyists listed on the Amazon payroll (some are contractors). Two of Amazon’s big lobbying pushes last year were for retail drone delivery and the 33-foot-twin-trailer trucks. The trucking industry as a whole was split on this issue and it was not a priority within the industry. Learning that Amazon was a big player here is a disconcerting development. Why is a “tech company” driving the trucking industry’s legislative affairs? Although in the end this was a losing issue the drone lobbying seems to be succeeding. They are working with NASA to devise an air traffic system that would essentially create drone lanes.
Speaking of the skies, in early March 2016 they bought a 9.99% stake in Air Transport Services Group (ATSG) which has set up 20 Boeing 767 cargo planes for Amazon’s use. The terms of this deal allow Amazon to acquire 19.99% of the company within 5 years. All these interests paint a very clear picture. Amazon wants to control planes for overnight and international delivery. They want longer trucks to ship more products faster and they want to cut out local deliveries with drones. With their enormous power and influence clearly they aim to become a major player all across the transportation industry.
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