Amazon shares rose as the company expanded its logistics services
5 May 15:43
Amazon has consolidated its delivery services (road, sea, and air freight) into a new offering (Amazon Supply Chain Services), which has boosted the company’s stock price. Bloomberg reports this, according to "Komersant Ukrainian".
“Amazon announced the launch of ASCS, combining its existing delivery and ‘last-mile’ services into a new offering already used by companies such as Procter & Gamble, American Eagle Outfitters, and 3M,” the report states.
Amazon.com shares jumped to a new record high following Monday’s announcement, the agency reports.
Initially, Amazon’s logistics network stored products it sold on its online marketplaces, with delivery handled by contractors. But over the past decade, the company has built its own delivery service, reducing its reliance on partners who could not keep up with the company’s growth.
This news is a sign for the entire transportation market, Integrity Asset Management noted.
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Analysts at Robert W. Baird noted that the company is likely trying to make better use of its network.
“ASCS is not a new product, but its growth has been somewhat subdued until now. The impact will likely be felt most in the parcel sector, as well as air freight, but we believe all modes of transport will be under close scrutiny,” commented the American banking holding company Morgan Stanley.
Analysts at Bloomberg Intelligence note that U.S. e-commerce is entering a new phase of growth. Amazon is the dominant player, “but digital competitors such as eBay and Wayfair, as well as rivals like Walmart, are gaining momentum.”
Recall: Earlier, Amazon Web Services (AWS) launched a new cloud service located entirely in Europe to address user concerns regarding data security—an issue primarily associated with American providers—by offering an independent alternative on the continent.
It is also known that Amazon.com Inc. is in talks to invest in ChatGPT’s developer—OpenAI—as part of a potential deal that could value the artificial intelligence company at more than $500 billion.
What is Amazon
Amazon is the largest marketplace and a global e-commerce giant headquartered in Seattle, USA. The company sells a wide variety of products online and handles their delivery, achieving incredible success without having its own product.
Many factors contributed to these results: a strict management model, a relentless drive for growth and expansion, and its own recruitment system.
Amazon was founded by Jeff Bezos in 1994. The company began as an online marketplace for books but later expanded to sell electronics, software, video games, clothing, furniture, food, toys, and jewelry
In January 2025, according to the annual Brand Finance Global 500 study, Amazon’s value (compared to 2024) increased by 15% to $356.4 billion.
In July 2021, Ukraine’s Minister of Digital Transformation Mykhailo Fedorov announced the signing of a memorandum of cooperation with Amazon. The use of Amazon Web Services is expected to accelerate the development of cloud technologies in Ukraine, drive digital transformation, and foster innovation
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