CEO Andy Jassy announced more than $4 billion in new investments to expand the company’s U.S. rural delivery network and speed up fulfillment across all regions.
“We’ve already increased the number of rural communities with access to our Same-Day and Next-Day delivery by 60%, reaching roughly half of the total we plan to expand to by the end of the year,” Jassy said. “These are small towns where people want fast delivery, but where other companies have been backing out and reducing service.”
It would be interesting to know how they are making that investment. More vehicle purchases for their delivery providers?
No matter how they do it, rest assured that their number crunchers will find a way to maximize the tax benefits to Amazon.
Somehow training costs might magically morph into capital investments…
Actually, I am gravitating to investment in used Amazon delivery vehicles which are no longer needed by their major delivery partners, and their lease to rural delivery partners.
Like many Amazon investments this affects the income statement in multiple areas, and is likely to benefit rather than hurt the balance sheet.
I do not believe the tax breaks are the dominant concern. My experience in large companies tells me that tax benefits are secondary to operating profits. So does my experience in my own small companies for that matter. Every time I allowed an investment decision to be made solely on the basis of a tax preference, it was the wrong decision for profitability.
There’s a lot to take advantage of in the tax code. Very friendly business environment at the moment.
My partner wasn’t exactly excited about the results last Nov but he’s pretty happy now.