Amazon is spending big to take on UPS and FedEx- Check out in detail

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Amazon is investing heavily in adding more warehouses and growing its fleet of airplanes, trucks and vans.

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The company revealed Thursday in its first-quarter earnings that its capital expenditures grew a whopping 80% over the trailing 12 months.

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The investments are part of Amazon’s goal to manage its own deliveries and speed up the process, thereby relying less on third parties such as UPS and the U.S. Postal Service.

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While the coronavirus pandemic pushed many businesses to slow spending, Amazon plowed profits back into physical expansion, growing its transportation and logistics presence across the country.

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Olsavsky said the company added more warehouses and grew its fleet of airplanes and linehaul trucks.

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Amazon also continues to grow its contracted delivery network, often distinguishable by blue Amazon-branded vans, to oversee more than 100,000 drivers.

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Amazon expects to keep spending big in these areas throughout the remainder of 2021 and potentially into 2022.

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Logistics expansion is critical for Amazon as it seeks to speed up deliveries and, in the future, make the business of delivering packages more cost effective.

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