Investing.com -- Amazon (NASDAQ:AMZN) could potentially save more than $20 billion annually by deploying autonomous electric vehicles (EVs) for middle- and last-mile delivery, according to a recent note from JMP Securities.

The investment firm believes that Amazon's use of autonomous driving technology, coupled with electric vehicles such as Rivian (NASDAQ:RIVN) delivery vans, presents a significant opportunity to reduce costs across its global shipping operations.

JMP says fuel expenses typically account for around 25-30% of per-mile costs in both middle- and last-mile deliveries. They believe switching to electric vehicles could cut per-mile energy costs by nearly 50%.

Additionally, they note that driver wages and benefits represent over 40% of the cost per mile in middle-mile transport.

By replacing internal combustion engine trucks with autonomous electric vehicles for middle-mile transport, JMP says Amazon could reduce shipping expenses by approximately 20% globally. This would translate to around $1.15 in savings per mile, contributing to the projected $20 billion annual savings.

In the near term, "as AMZN converts its last-mile fleet to electric Rivian fans, we see the potential for up to $7B of annual savings, globally," writes JMP.

While the larger savings from autonomous technology may take longer to materialize, the firm emphasizes that the potential for substantial cost reductions is significant over time.

"To be clear, we view this as a medium- to long-term opportunity," adds JMP, maintaining a Market Outperform rating and $265 per share price target on Amazon.

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