Amazon is set on Germany as their strategic move
Amazon is making a significant investment in Germany, with plans to further establish its presence in the European market. Here's a breakdown of the company's latest moves.
The online retail giant currently holds a market share of around 60% in Germany, significantly larger than its competitors like Otto. This dominance is set to grow, as Amazon plans to invest 8.8 billion euros in AWS infrastructure around Frankfurt by 2026.
Amazon's investment in Germany isn't new. Since 2010, the company has invested approximately 90 billion euros in the country. In 2024 alone, Amazon invested around 14 billion euros, a 2 billion euro increase from the previous year.
The company's focus on Germany isn't just limited to the digital realm. Amazon has been expanding its physical presence as well, with new sites created in Horn-Bad Meinberg, Dummerstorf, and Erfurt.
In a bid to improve customer proximity and expand same-day delivery services, Amazon plans to establish new logistics centers in Bietigheim (Baden-Württemberg), Könnern (Saxony-Anhalt), and Rohr (Bavaria) for 2025 and 2026.
Amazon's growth in Germany isn't confined to just infrastructure and logistics. The company employs thousands of people in various roles, including logistics, sorting, development centres, and more. The number of Amazon employees in Germany increased by 4,000 to 40,000 within a year.
However, due to its market power, the Bundeskartellamt (the German Federal Cartel Office) is closely scrutinizing Amazon. The company's dominance in the online retail market has raised concerns about competition and fair trade practices.
It's worth noting that subcontractors handle package transportation for Amazon in Germany. This outsourcing strategy allows Amazon to maintain flexibility and efficiency in its delivery services.
In conclusion, Amazon's investment in Germany is a testament to the company's commitment to the European market. With plans to invest in new logistics centers and enhance same-day delivery services, it seems that Amazon is poised to continue its growth in the region.
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