Upon joining domestic rival Target, Arthur Valdez is sued by Amazon for violating his non compete clause.
Amazon Inc. is pushing efforts to build its own shipping network. The company’s rising multi billion dollar logistics bill has proved to be a liability in the past year and it will keep on increasing considering the increase in growth significantly. Being one of the biggest online retailers in the domestic and international markets, the e-commerce giant is now trying to become an evolving advanced logistics giant in the coming times. And for that, it is investing a lot of money such as Amazon leased 20 cargo jets to begin the air delivery process.
When it comes to delivering products within the US boundaries, Amazon believes that taking a full day is not good enough. It seeks to deliver packages a little faster to its customers. Furthermore, the company wants to reduce its reliance on other shipping giants including FedEx and UPS and will bolster its relations with the United States Postal Service. With so much going on for the company at this moment, the seasoned logistics executive of Amazon was approached and hired by its domestic rival Target. This did not greatly effected the online retailer but a loss is a loss at such a crucial time.
According to the recent news, it is believed that the e-commerce leader has sued its former logistics executive for joining Target. The move came just a month after he joined the domestic rivals and said that Arthur Valdez has violated the non compete clause inserted in his contracted when he was joining. This clause prohibits him from joining any rival firm for at least 18 months after leaving Amazon.
Amazon said, “Mr. Valdez new position with a key Amazon competitor will involve the disclosure and use of Amazon's confidential and proprietary information to Amazon's detriment and Target's advantage in a core area of competition between the companies: the cost-effective and rapid movement of goods in the most efficient way possible for retail customers.”
Amazon stated that Arthur Valdez signed his non compete clause back in 2012 and he is a well reputed 16 year veteran at the world’s largest retailer. He was the vice president of operations and had the responsibility to handle Amazon.com’s international supply chain expansion for a long time.
On this suit filed by Amazon, the Target spokeswoman, Molly Synder, wrote in an email to The Associated Press Wednesday, “We have taken significant precautions to ensure that any proprietary information remains confidential and we believe this suit is without merit. However, as this is pending litigation, we are not going to comment further at this time.”
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