Technology

Amazon France turns its last mile delivery green

Amazon said this week that it reached a turnover of 7.3 billion euros in France in 2020, 28% more than in 2019. The company, which has not paid corporate taxes in Europe in 2020 despite a turnover of 44 billion euros. euros, specifies that your total “tax contribution” in France amounted to 600 million euros last year, including 310 million euros of direct deductions (including corporate tax, but also employer contributions, local taxes, etc. ), the difference between the two figures corresponds essentially to social charges and net VAT.

In accordance with its custom, the firm refuses to communicate the figure for which it is systematically attacked, that of corporation tax. “It is important to take a holistic view because focusing only on one element of taxation, such as corporate tax, only offers a truncated view of the tax contribution of companies,” explains Amazon.

Zero emission logistics

Amazon delivered the speech on November 10 on the sidelines of the Amazon Academy, an event dedicated to e-commerce entrepreneurs. The company also made more specific announcements this time about its delivery systems.

Amazon, which has set a distant goal of net zero carbon emissions for all of its operations by 2040, is beginning to adopt low-carbon “last mile” delivery methods. The e-commerce giant is deploying a fleet of electric vehicles, utility bicycles and carts for delivery on foot, from its logistics micro-hubs located in Paris. Currently, two-thirds of the orders processed by Amazon Logistics in Paris are delivered without CO2 emissions. The distributor intends to extend this strategy to other cities in France. This is already the case in Annecy, where 100% of deliveries are made using carbon neutral transport solutions.

Negotiated purchases

These solutions are implemented by Amazon’s delivery partners, who ensure deliveries operated by the platform. These represent between 70 and 80% of the orders, the rest being in charge of players such as La Poste and Colis Privé. Amazon works with 130 local delivery providers, operating fleets of up to 30 vehicles. In Paris, around 500 delivery men use soft mobility solutions.

It is the service providers who invest in the new vehicles, but they benefit from the solutions negotiated by Amazon. The company has also ordered 1,800 electric vans from Mercedes-Benz for its fleet in Europe and has agreements with Stellantis. It is also investing in charging stations. It has installed several hundred of them at its six sites near Paris. As for cargo bikes, Amazon has established agreements with manufacturers to work on models specifically adapted to the needs of its delivery people, says Ronan Bolé, director of Amazon Logistics in France.

Packaging search

Amazon operates just over thirty fulfillment centers in France, including eight large fulfillment centers, and local sites that will grow to twenty-five by the end of the year. In and around Paris, three RATP bus stations serve as a local hub.

The next step, which should be announced very soon, concerns packaging. The company wants to minimize the use of plastic packaging when delivering packages to customers, eliminating overvoltage, which also helps reduce package weight. Since 2015, the company claims that it has already reduced packaging weight by 36%.

In addition to last-mile delivery, Amazon has been testing emission-reduction solutions for long-haul transportation, such as hydrogen trucks since 2021.

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