Amazon has quietly ordered 2,000-plus vans

Amazon branded Van

Amazon vans are already on the road.

 

  • Amazon just bought more than 2,000 large delivery vans from Spartan, a specialty vehicle company in Michigan.
  • "I think as you continue to read, what this customer is doing in the delivery area, it's going to fit right into our strategy," Daryl Adams, the president and CEO of Spartan, told investors in May.
  • It's the latest sign that the US Postal Service and UPS, which provide considerable last-mile-delivery services for Amazon, should be worried about Amazon's sprint to put its delivery network in-house.
Last week, a vehicle company in Michigan announced it had landed an order of more than 2,000 delivery vans from "North America's leading e-commerce retailer." Amazon confirmed to Business Insider on Wednesday that the Seattle e-commerce giant was indeed that retailer.

The press release from the Michigan company, Spartan, said the 2,237 delivery vans from its Utilimaster brand would be built during the second half of 2019 and were being customized for Amazon and its "last mile delivery requirements."

The order underlines again where Amazon's delivery aspirations lie. Rather than depending on the US Postal Service, UPS, or FedEx for its last-mile deliveries, Amazon will continue to invest in its own network, experts say.

"For that last-mile final delivery, it just kind of fits Amazon would do this as they build out their independent-service-provider network," Kevin Sterling, a managing director at Seaport Global Securities, told Business Insider.

Source of this article and other great articles