Amazon (AMZN - Free Report) continues to exhibit its commitment toward meeting the challenges associated with the delivery of essential medical supplies required for the prevention of coronavirus.
In sync with this aim, the company has recently won a deal in Canada to do the same.
Amazon Canada has entered into an agreement with the Canadian government to deliver the medical equipments like test kits, face shields, masks, gloves, gowns and ventilators in various provinces and territories of the country to control the spread of COVID-19.
Notably, the company’s robust distribution strength will help the healthcare workers of the country in managing the pandemic.
Moreover, its strong delivery services will help the government to ensure timely medical aid to parts of the country, which are severely affected by COVID-19.
The latest deal underscores the importance and reliability of Amazon’s strengthening delivery system and distribution network that contributes to its dominant position in the global e-commerce market. In fact, this has been pivotal in its northbound share price movement.
Moreover, its growing initiatives to help the society to combat coronavirus pandemic are instilling investor optimism in the stock.
Coming to the price performance, Amazon has returned 8% over a year against the industry’s decline of 1.4%.
Medical Supplies Delivery Gaining Steam
Amazon is leaving no stone unturned to deliver medical supplies timely during this needy situation.
The company has recently joined forces with a research program namely Seattle Coronavirus Assessment Network (SCAN) to deliver and pick up COVID-19 test kits in Seattle.
Notably, Amazon strives to mitigate the risks of spreading COVID-19 infection with this initiative that focuses on people who are feeling sick. People who are asymptomatic will also be targeted.
These people will be given nasal swabs, which will be collected for testing purpose. On positive detection, the concerned person will be contacted.
Further, the company has been reportedly contacted by the U.K. government to deliver coronavirus test kits to the health and social care workers in the country.
Gradually, the company’s delivery network will be leveraged by the government to reach the general mass of the U.K. with test kits.
All the abovementioned endeavors remain major positives for Amazon in its fight against coronavirus.
Delivery Game Heats Up
Growing initiatives by Amazon in delivering medical essentials required to curb the spread of coronavirus is likely to intensify competition amid e-commerce companies.
We note that eBay (EBAY - Free Report) is not yet in discussions regarding delivery of COVID-19 related medical supplies.
Meanwhile, Alibaba (BABA - Free Report) is constantly extending support to several nations across the world in their fight against novel coronavirus. As of now, 23 Asian countries received 100,000 sets of protective clothing, 7.4 million masks, 485,000 test kits in total and other essential medical equipment from Alibaba Foundation and Jack Ma Foundation.
Along with Asian countries, North American, Latin American, European and African nations also received medical aid from the Chinese e-commerce giant.
Apart from e-commerce companies, Uber Technologies (UBER - Free Report) is also aggressively looking into striking a deal with healthcare officials and the government to deliver COVID-19 test kits.
Nevertheless, Amazon’s robust and well-known distribution strength is likely to keep it ahead of the curve.
Currently, Amazon carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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