Should Amazon.com Inc (AMZN) Fear Or Salute AMP Electric Vehicles’s Improvements

Amazon.com, Inc. (NASDAQ:AMZN) has been playing around with drones and many other experimental technologies that would allow it attain more than just profitability. However, according to LiveScience in an article on FOX, there’s a better option available at the moment and it is offered by AMP Electric Vehicles. The strategy promises to save some $0.02 cents per mile out of the current $0.5 total expense per mile, but it’s not sure if the 4% decrease in cost can be considered a great incentive to adopt the new system.

Amazon.com, Inc. (NASDAQ:AMZN)’s original plan was to get the small quad-copter propelled electronic friends carry up to 5lbs of weight from the fulfillment centers to the destination. Now, the first drawback with this strategy is the fact that the poor robots will not handle all the merchandise. Moreover, due to economical reasons they will be made little and cheap, that is somehow weak against any potential attacks. Obviously, Amazon.com, Inc. (NASDAQ:AMZN)’s economies of learning would have leveled up everything in a short while, but this does not exactly qualify the obstacle as nonexistent. Moreover, the company’s handling most of the purchases in the world and is a monopolist of the first item in the list of best selling products online.

The solution proposed by AMP’s management is the upgrade of the current trucks that we’ve been accustomed seeing at FedEx, DHL or UPS to electric vehicles, which can drive solely on their battery up to 60 miles. Amazon.com, Inc. (NASDAQ:AMZN)’s not affected even slightly by the news as the improvement would be quite modest. Nevertheless, this is not the main idea that could boost productivity. AMP’s CEO Steve Burns said that each truck will be like a checkpoint for the drones, so that there will be no need to continuously return to warehouses. Unfortunately, the task of watching over the 10lbs 8-propeller robots, which are able to lift as much as 10lbs or double of what Amazon.com, Inc. (NASDAQ:AMZN)’s tiny tech helpers can achieve, will be on the driver’s responsibility list.

Whether these trucks will be driving all around the US or not, there is a green future awaiting for us.

Disclosure: none
Free Report: Warren Buffett and 12 Billionaires Are Crazy About These 7 Stocks

Let Warren Buffett, David Einhorn, George Soros, and David Tepper WORK FOR YOU. If you want to beat the low cost index funds by an average of 6 percentage points per year look no further than Warren Buffett’s stock picks. That’s the margin Buffett’s stock picks outperformed the market since 2008. In this free report, Insider Monkey’s market beating research team identified 7 stocks Warren Buffett and 12 other billionaires are crazy about. CLICK HERE NOW for all the details.