The retail company is planning to acquire the French delivery package service in an effort to start its on delivery process rather than relying on external parties.
A report published in the Seattle Time highlighted that Amazon is all set to start its package delivery service, as it is on its way to acquire Colis Prive, a French package delivery firm. According to the report, the retail giant will be purchasing a 75% stake in the delivery firm.
The e-commerce giant is going all out to change the face of retail, as it adds the distribution aspect into its logistics sector. The deal is expected to be finalized and carried out in the first half of 2016.
The initial theory that emerged in the past regarding Amazon’s own delivery service turns out to be true as this acquisition news surfaced. It is believed that this would only strengthen the company further as it makes an effort to build its own distribution service, according to Colin Sebastian, an analyst at Baird.
Sebastian added that the ecommerce organization would be using this for its in-house distribution services along with making deliveries to third-party companies. Representatives from Colis Prive also said in an interview with a French newspaper that it will continue to build its ‘commercial portfolio’ and will not only distribute its services to the retailer.
This acquisition has been a part of the plan to take on its rivals UPS and FedEx, although it will be a while till it manages to emerge as a strong competitor in the delivery industry. Almost 25% of the French company is already owned by Amazon.com, now it is aiming at acquiring the rest of the 75% as well.
Presently, the online retailer has been relying on UPS, FedEx or DHL for its deliveries to reach its customers. In the near future, it plans to have delivery drones and its own fleet of trucks. Thus, it is safe to say that in time, it will not be relying much on third party delivery services.
On the other hand, the retail giant is working on leasing 20 Boeing 767 jets for transportation purposes of its products and getting them delivered to various customers.
Amazon stock, at this point, is being traded at $617.74, which indicates an increase of 1.76%. Towards the high end, the share price was seen at $619.85 and the lower-end was seen at $598.57. Amazon reported earnings per share of $0.69 with price to earnings ratio of $896.11. The 52-week high of the e-commerce company is $696.44 and 52-week low is $285.25.
No comments:
Post a Comment