© Robert Scoble
The leader of e-commerce, Amazon, has recently spent nearly $1.5 Billion on 900 acres to build an air cargo hub located in northern Kentucky, the size compares to similar facilities own by companies such as FedEx and UPS.
Amazon has agreed on a lease of fifty years for the property. The company believes this investment will allow them to be more independent in their service while delivering packages in a less costly and faster way. The company expects to spend roughly $462 million on construction and renovations for their properties.
The investment expects to create around 2700 new full and part-time job roles, complementing the company’s existing delivery service. The Board of the Kentucky Economic Development Finance Authority approved a $40 million incentive on taxation over ten years for Amazon if the company manages to follow up to their employment expectations for the project.
In 2015 Amazon acquired forty planes from which sixteen are already operational, as well as adding four thousand semi-trailers in order to fortify the land delivery fleet. Analyst believe that Amazon has a $400 billion-plus market opportunity in delivery service, regardless the company expressed that their intentions for investing is merely about making the service more efficient without replacing their current contracts with cargo carries.