Amazon has become a household name due to the dominance of its colossal online store. With the company's latest acquisitions, however, it seems like the world's premier e-commerce company is setting its sights on creating its very own shipping service, according to USA Today.
While Amazon has been quite silent, it plans to complete its acquisition of French parcel delivery company Colis Privé by the end of the first quarter of 2016. Amazon currently has a 25 percent stake in the organization.
Amazon has so far relied on third-party delivery companies to ship its goods to its millions of customers worldwide. With the massive growth of online shopping in recent years, companies like UPS and FedEx have struggled to meet demands during the peak season, with both companies failing to deliver goods during the holiday season in the past, reported Forbes.
Apart from the strain in logistics companies, delivering its goods through external shipping companies has been quite costly for Amazon. The company reported in the third quarter of 2015 that it spent $3.2 billion in shipping costs alone.
Indeed, Colis Privé is not even close to the size of companies like UPS and FedEx. However, the acquisition of the company signifies Amazon's intention to eventually start delivering its own goods, and maybe even packages from other retailers, according to Tech Spot.
It might be a long way ahead, but Amazon's own delivery service is coming, and if the company's consumer electronics branch is any indication, it would be very, very competitive indeed.
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