Amazon-Alibaba War Intensifies As US E-Commerce Retailer Ramps Delivery Investments, Strategies

Amazon.com, Inc AMZN has announced fresh initiatives to spruce up delivery just after Alibaba Group Holding Ltd BABA promised fast deliveries from China to anywhere in the world, fueling its war with Amazon.

What Happened: Amazon launched the Amazon Air Hub operations at the Cincinnati/Northern Kentucky International Airport (CVG). It will serve as the central hub for Amazon Air's U.S. cargo network, facilitating the rapid transport of customer packages across the country. 

The 800,000 square-foot sortation building is situated on an over 600-acre campus and equipped with the innovative use of robotics technology that helps move and sort packages. The building will also feature a solar rooftop scheduled for installation over the next year.

The $1.5 billion investment in Northern Kentucky will eventually create thousands of jobs for people from various backgrounds. 

Separately, Amazon expanded investment in Florida with six new buildings to support operations closer to customers. It brought the company's total state investment to over $18 billion and the country's investment to $530 billion since 2010.

The new robotics fulfillment center and five new delivery stations will likely create over 2,000 full-time jobs in the Sunshine State. The new 630,000 square-foot fulfillment center, likely to launch in Tallahassee, Florida, in late 2022, will create over 1,000 full-time jobs. 

Why It Matters: Employees at the fulfillment center will pick, pack, and ship small items to customers, like books, electronics, and toys. 

The five new delivery stations will power the last mile of Amazon's order process. Delivery stations also help entrepreneurs to build their own business delivering Amazon packages. 

Additionally, independent contractors can create their delivery schedules for Amazon Flex. Amazon also recently launched a new fulfillment center in Port St. Lucie, Florida.

Price Action: AMZN shares closed lower by 0.86% at $3,292.11 on Wednesday.