Amazon is Pushing The U.S. Government to Authorize Its Efforts on Establishing a Delivery Business
Mar 21, 2016 11:42 AM EDT
It's been months since Amazon first expressed its intention to get into the logistics and delivery business, taking on existing rivals like FedEx and UPS. As for now, the company is leaning on the U.S. government to grant it the support it needs to become a delivery powerhouse.
In its efforts to cut supply chain and, in turn, reduce cost as well as assuring the quality of product delivery, Amazon has made some moves to be its own carrier. From building its own fleet of delivery drones, buying trailers, and signing up drivers for on-demand deliveries, Amazon is pushing forward to achieve its goal. The company even leased 20 Boeing planes to support its logistics conquest.
The U.S. government support and approval is apparently on the top of the company's mind in its efforts. According to The New York Times, in addition to spending millions on this effort, the company is also meeting regularly with lawmakers and regulators. In fact, the company has emerged as one of the tech industry's most outspoken players in the capital Washington.
Amazon's meetings with the U.S. officials were mainly directed to discuss the permission for new uses for commercial drones, extend the maximum length of trucks, and improve road and bridges to support the delivery system. The company is also seeking to prop up a partnership in delivery with the United States Postal Service.
Besides achievements, some concerns have also arisen in Amazon's delivery ambition, as noted by The Economic Times. Some drone makers have argued that the company is pushing too hard and too fast as airline and pilot groups remarked how opening skies to more drones could create safety risks. "The chances of a collision will go away up when you have more unmanned aircraft up," said a spokesman for the Helicopter Association International, Chris Dancy.
According to Alaska Dispatch News, Amazon has spent as much as $9.4 million on lobbying in 2015. That's almost twice the amount spent the year before. The money was allocated to pay a bigger lobbying staff and pay for a new office to house it. Reports show that the company's spending grew at a faster pace than any other big tech company's.
American e-commerce and cloud computing company Amazon is now leaning on the government to support and permit their moves in efforts to get into the delivery business. The company's lobbying team is pushing hard to get the government's authorization for the company's use of commercial drones, trucks, and partnership with the U.S. Postal Service.