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Amazon may expand logistics operations in China with “Dragon Boat”
Bloomberg News has revealed documents that may contradict Amazon’s claims that they are not looking to compete with delivery companies.
The documents, including a 2013 report to Amazon’s senior management team, reveal a project called “Dragon Boat”, a proposed aggressive global expansion of the Fulfillment By Amazon service into China and India.
Fulfillment By Amazon provides storage, packing and shipping for independent merchants who sell through the Amazon website. The reports uncovered by Bloomberg suggest an expansion of this service into a global delivery network, which would control the flow of goods between factories and merchants in China and India and customers in New York, Atlanta and London.
Not only would this pitch Amazon against FedEx and UPS, according to Bloomberg, but also against China’s Alibaba Group Holding Ltd.
The proposal culminates in the launch of a venture called “Global Supply Chain By Amazon” as early as this year, which would put Amazon in a position to bypass brokers and freight forwarders by fulfilling that role themselves—buying cargo space at reduced rates and allowing merchants to book online.