Not content with investing in food delivery companies with cutesy names, Amazon is planning to become a real fixture in China, with an expansion of its logistics operations that will handle goods headed to Japan, Europe, and the US.
Last year, Amazon registered its Chinese subsidiary, the Beijing Century Joyo Courier Service, with China’s transport ministry, which will allow exporting from inside the country. An application was also filed with the Shanghai Shipping Exchange for Amazon to be the shipping broker for 12 trade routes, such as the Shanghai-to-LA and Shanghai-to-Hamburg routes, reports Reuters. Essentially, they’re not screwing around.
For a 40-foot van from Shanghai to Hamburg, Beijing Century will reportedly be charging somewhere between $530 to $2530 — a similar rate to other brokers.
It would seem the man responsible for the expansion is Brian Xue, vice president of Amazon’s operations in China. Since joining the company in 2014, he’s apparently been pushing for a takeover of the mainland, personally signing the recent filings with the government himself.
Amazon’s master plan (code named “Dragon Boat” according to Forbes) is to build a system that will allow its customers to ship to absolutely anywhere in the world, at minimal cost, and in just three days or less.
Alibaba has similar global ambitions and is rapidly expanding its logistics networks and services to every continent. In streaming, banking, payment and other systems, Alibaba is already out ahead. This strike at Jack Ma’s home turf is likely to be just one of many attacks in a long Cold War to come between the two companies.
Who you got your money on?