Amazon has expanded its fleet to work to transition Prime's two-day service to a one-day delivery service in the United States. This service allows packages to arrive early in the door of Prime customers and may help Amazon maintain its competitive edge with competitors such as Wal-Mart.
Amazon said in April that it will spend $800 million this quarter to renovate its shipping infrastructure to support this change. In addition, CEO Jeff Bezos last month participated in the groundbreaking ceremony for Amazon's new $1.5 billion air transport hub in Hebron, Kentucky. Amazon has also established a transportation network consisting of 10,000 truck trailers.
However, this work has brought new challenges to the company. Pilots working for Prime Air often complain about poor salaries and poor working conditions. In addition, FedEx decided this month to no longer renew the express air transport contract with Amazon, a move widely seen as a response to Amazon's establishment of its own shipping network.