Amazon made its biggest move yet in New York City, acquiring nine warehouses to meet the increased demand for online shopping.
Amazon already has 12 warehouses spanning the metropolis. Over two dozen more warehouses sit in the New York suburbs. The need for more space is due to the increase in online shopping since last year. Because of Covid-19, e-commerce has experienced a sharp delivery increase of 50 percent up to 2.4 million packages per day to locals.
Amazon adding more warehouses in the city is a critical step for keeping pace with online consumerism amid the outbreak. While struggling with finding space, Amazon utilized its sister company, Whole Foods, to serve as a make-shift distribution center, with Amazon workers usually outnumbering the grocery employees.
Truck routes from New Jersey and Pennsylvania to New York are utilized for package delivery, where warehouses in the neighboring states are usually larger and cheaper to maintain. However, having more space closer to the actual delivery sites is more cost-effective. It can decrease shipping prices by as much as 20 percent compared to packages that arrive from other locations. Amazon is adapting, as it recognizes that the trajectory for deliveries will continue to increase.
One of the new warehouses is located in Queens, the original site of the proposed plan to build a second headquarters with 25,000 jobs. Two years ago, New York Governor Andrew Cuomo‘s attempts to incentivize the company to finalize the deal failed. New York is now receiving a second chance to add jobs in the city.