Amazon’s Shipping Empire Is Challenging UPS and FedEx
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Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx
#2I could see a future where Amazon does general shipping like FedEx as a side business to subsidize its real business.
Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx
#3At some point is it possible that Amazon buys UPS or FedEx to boost its own fleet?
Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx
#4I could see a future where Amazon does general shipping like FedEx as a side business to subsidize its real business.
Much like AWS spun out of their in-house experience running flexible computing infrastructure, this would be a natural fit for them to flex their logistics strengths.
Via their multi-channel fulfillment offerings, you can already use Amazon's logistics network to ship your products sold on or off of Amazon. This would just be supporting more type of shipments than just fulfillment.
On the other hand, Fedex, DHL, UPS etc have built a big part of their strengths of shipping worldwide overnight. That's very different than what Amazon does, where they try to warehouse products close to customers to minimize shipping distance and time. Great when you want to buy an iPhone, but not suitable for shipping a document from New York City to Tokyo.
Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx
#5At some point is it possible that Amazon buys UPS or FedEx to boost its own fleet?
Fedex contracts out its deliveries. They are more like franchise. This is kind of what amazon is doing for the past few years.
Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx
#6At some point is it possible that Amazon buys UPS or FedEx to boost its own fleet?
Fedex contracts out its deliveries. They are more like franchise. This is kind of what amazon is doing for the past few years.
fedex ground drivers are contractors, fedex express are employees.
fedex ground originated as a totally separate company that they acquired and re-branded.
https://about.van.fedex.com/our-story/history-timeline/histo...
Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx
#7I could see a future where Amazon does general shipping like FedEx as a side business to subsidize its real business.
I believe this is what SWA, Shipping with Amazon, aims to do.
Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx
#8It's good for Amazon, but is it good for consumers? Isn't a postal service something of a natural monopoly — the more competing services there are, the less efficient each is, because instead of one vehicle with one load of deliveries, you have two or more vehicles with fractions of that amount?
It's certainly not good for the environment at least.
Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx
#9I could see a future where Amazon does general shipping like FedEx as a side business to subsidize its real business.
Much like AWS spun out of their in-house experience running flexible computing infrastructure, this would be a natural fit for them to flex their logistics strengths. Via their multi-channel fulfillment offerings, you can already use Amazon's logistics network to ship your products sold on or off of Amazon. This would just be supporting more type of shipments than just fulfillment. On the other hand, Fedex, DHL, UPS…
Yeah, but most ecommerce operators have no incentive to use Amazon, because you are paying your competitor.
There is a reason most grocery stores are shifting, or have already shifted to, Google or Microsoft for their cloud infrastructure.
Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx
#10Earlier quoted context omitted.
Much like AWS spun out of their in-house experience running flexible computing infrastructure, this would be a natural fit for them to flex their logistics strengths. Via their multi-channel fulfillment offerings, you can already use Amazon's logistics network to ship your products sold on or off of Amazon. This would just be supporting more type of shipments than just fulfillment. On the other hand, Fedex, DHL, UPS…
Yeah, but most ecommerce operators have no incentive to use Amazon, because you are paying your competitor. There is a reason most grocery stores are shifting, or have already shifted to, Google or Microsoft for their cloud infrastructure.
It's a major issue with AWS across a bunch of sectors. I work at a large SaaS company transitioning to public cloud, the number of companies that contractually obligate us not to host on AWS is at least an order of magnitude higher than any other cloud provider.