Amazon.com, Inc. (NASDAQ:AMZN) is taking aim at its rivals this holiday season with 10,000 machines.
That’s according to Liz MacDonald of Fox Business Network where she reported that Amazon.com, Inc. (NASDAQ:AMZN) CEO Jeff Bezos has robots up his sleeves for the holidays.
“Jeff Bezos has about 1,400 robots in Amazon fulfillment centers across the country. He wants to ramp it up to 10,000 robots and here’s the bottom line for Amazon – the aim is to cut their fulfillment costs,” MacDonald said.
According to the Fox Business Network host, Amazon.com, Inc. (NASDAQ:AMZN) spent about $2.6 billion in fulfillment costs in the third quarter of this year.
MacDonald said that Bezos, the leader of Amazon.com, Inc. (NASDAQ:AMZN) – the giant electronic commerce giant second only to Alibaba and one of the world’s most frequently visited websites – plans to cut fulfillment costs for his company by about 40%.
Put into perspective, Bezos plans to use robots to cut about $1 billion from order fulfillment spending.
Bezos’ plan to ramp up the use of robots in his warehouses is especially timely because the holiday season is upon communities. Orders usually pick up this time of the year.
Connected to this planned rollout of more robots for Amazon fulfillment centers was the $775 million purchase of Kiva Systems Inc. two years ago. Kiva specializes in order fulfillment automation. In Amazon’s quarterly report last May, Bezos revealed 10,000 Kiva robots would be working in Amazon centers in the last quarter of the year.
MacDonald noted that the company posted its worst quarterly loss in the past 14 years in the just-ended quarter mainly because of high fulfillment costs.
Amazon.com, Inc. (NASDAQ:AMZN) shareholders includes Eashwar Krishnan’s Tybourne Capital Management. The first reported owning 412,725 shares in the company by the end of the second quarter.