Amazon delivers hubs, jobs in time for holidays

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This article was published 03/12/2021 (1155 days ago), so information in it may no longer be current.

You may have seen the dark blue vans zipping about, their sides emblazoned with blue arrows and white letters. Maybe a driver has delivered a parcel (or several) to your door.

Many have known for months — but, on Thursday, Amazon announced its new distribution hubs in Winnipeg.

The corporate behemoth launched two delivery stations in mid-September — one on Plymouth Street, and another on Regent Avenue.

The sites have created roughly 200 jobs.

“I say to everybody I encounter (at work), ‘How does it feel to be an elf? Because all the kids are waiting for their presents, and you better get out there and deliver them,’” an employee at the Plymouth location said with a chuckle Thursday.

He’s one of about 50 to help online-ordered packages from the Plymouth warehouse reach doorsteps. Both Winnipeg locations have room to grow, according to Dave Bauer, the head of communications for Amazon Canada Operations.

“We’ll see… how the demand increases,” Bauer said.

The two spots, combined, dispense around 30,000 parcels daily. Should the appetite grow, Amazon will look at new Manitoban facilities, Bauer said.

“Winnipeg is definitely an area of choice,” he said. “It is a great hub for business innovation.”

Amazon touts deliveries as quick as 30 hours post-purchase and a $17 per hour employee starting wage.

The company raked in $108.5 billion in the first three months of 2021 — up 44 per cent from the same time last year — according to its first quarter report. It outlined $8.1 billion in profit, a significant rise from the $2.5 billion in 2020’s first months.

“We’ve got a lot of customers (in Winnipeg) who love Amazon,” Bauer said. “If we have an area where… we see a lot of customer growth, then we want to invest.”

Amazon’s presence is a positive thing, according to Dayna Spiring, the president and CEO of Economic Development Winnipeg.

“There’s always an argument of whether we do (delivery) strictly locally or whether we support international companies as well,” Spiring said.

A middle ground is likely best, she said.

“We know Winnipeggers are using Amazon. We know that Amazon is a big creator of jobs and revenues, and they’re prepared to make investments. I think we’d be foolish to let those investments go to other cities if we could find a way to recruit them to Winnipeg.”

Having Manitoba-bred distributors is also important, Spiring said. But, Amazon brings a “multiplier effect,” meaning other companies — like restaurants — will benefit from the new jobs.

Manitoba submitted a proposal to host Amazon’s second headquarters in Winnipeg during the company’s 2017 search.

“We wanted to make sure Winnipeg was on their radar,” Spiring said. “We’re going to continue to make sure they know what Winnipeg has to offer.”

Amazon’s announcement comes in time for the holidays, though Bauer said it typically takes Amazon weeks to months after opening to make such statements.

gabrielle.piche@winnipegfreepress.com