Amazon Unveils AI Tool to Boost Package Delivery Efficiency
Amazon (AMZN) has launched an innovative artificial intelligence (AI) tool called Vision Assisted Package Retrieval (VAPR) aimed at enhancing the package delivery process for its drivers. This new system is intended to help drivers organize packages more effectively and verify deliveries quickly in busy vans.
Notably, VAPR employs computer-vision technology to identify packages, eliminating the need for barcode scanners. When drivers arrive at a delivery site, VAPR projects a green “0” on packages that need to be delivered and a red “X” on those that should stay in the van. By early 2025, Amazon plans to install this system in 1,000 of its Rivian (RIVN) electric vans.
In trials conducted in cities like Boston, Amazon has reported promising outcomes, with drivers saving more than 30 minutes per route.
Shifting Focus: Jassy’s Leadership Strategy
Implemented by current CEO Andy Jassy, this shift in technological prioritization underscores a change in strategy since he took over from founder Jeff Bezos in 2021. While Bezos emphasized ambitious long-term projects such as drone delivery, Jassy is concentrating on technology that can reduce costs and enhance the appeal of Amazon’s low-margin e-commerce business to investors.
In addition to VAPR, Amazon is pursuing other initiatives to streamline operations, including an AI-driven shopping guide intended to provide customers with detailed product information and recommendations. These guides are designed to facilitate quicker, more informed purchasing decisions, thereby reducing the time customers spend researching unfamiliar items.
Wall Street Insights: Price Target for AMZN
On Wall Street, Amazon (AMZN) has received a Strong Buy consensus rating based on 43 Buys and two Holds in the last three months. As of now, the average price target for AMZN stands at $222.95, indicating a potential upside of 20.4%. The company’s shares have appreciated by 21.87% year-to-date.
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