Amazon (AMZN) introduced a new artificial intelligence (AI) tool called Vision Assisted Package Retrieval (VAPR) to streamline the package delivery process for its drivers. This system is designed to save time and effort by helping drivers organize packages and quickly verify correct deliveries in crowded vans.
It should be noted that VAPR uses computer-vision technology to identify packages without the need for barcode scanners. Upon reaching a delivery location, VAPR will project a green “0” on packages that need to be dropped off and a red “X” on those that should remain in the van. By early 2025, Amazon plans to equip 1,000 of its Rivian (RIVN) electric vans with this system.
Amazon said it has been testing VAPR in markets like Boston, reporting promising early results, with drivers saving over 30 minutes per route.
AMZN’s Priorities Shift Under CEO Jassy
Amazon’s focus on new technologies to improve near-term efficiency reflects a shift in priorities under current CEO Andy Jassy, who took the helm from founder Jeff Bezos in 2021. While Bezos concentrated on futuristic projects like drone delivery, Jassy is focused on implementing measures to reduce costs and make Amazon’s low-margin e-commerce business more appealing to investors.
Apart from faster delivery technology, AMZN also announced initiatives to streamline operations. For instance, it disclosed an AI-powered shopping guide to provide customers with detailed information and recommendations on a variety of products.
These guides aim to help customers make quicker, more informed decisions, cutting down the time spent researching unfamiliar products.
What Is the Price Target for AMZN?
Turning to Wall Street, AMZN has a Strong Buy consensus rating based on 43 Buys and two Holds assigned in the last three months. At $222.95, the average Amazon price target implies a 20.4% upside potential. Shares of the company have gained 21.87% year-to-date.
