Amazon is building an app that connects truck drivers with shippers, getting itself into the $800 billion trucking industry.
|Scooped by Farid Mheir|
WHY THIS IS IMPORTANT
A key piece of eCommerce and retail has to do with delivering packages from warehouse to customer homes or offices. Amazon spends 12% of its revenue for shipping and is expected to ship more volume than FedEx in 3 years. To reduce this cost and improve customer service by allowing more frequent and faster delivery, Amazon has been doing a number of things:
2- building delivery infrastructure between its warehouses and distribution centers and delivery spokes;
3- now it is planning to become a broker between small parcel delivery providers in a UBER like model (this article)
4- self-driving vehicles have been targeting trucking industry as their primary focus, with UBER recently investing in startup OTTO and demonstrating a 2000 case beer delivery via self driving truck
Combine all these innovations and you have a profound disruption in the delivery and logistics industry. Retailers should now consider Amazon no longer as an online marketplace and third-party logistics company (3PL) but also as a parcel delivery solution provider that can compete FedEx and UPS provide last-mile delivery solutions and eliminate the need for retailers to maintain or lease their own delivery vans and trucks.
Links in this post:
- amazon net shipping costs 4.7% of revenue: http://fmcs.digital/blog/new-e-commerce-strategies-threaten-ups-fedex/
- amazon total shipping costs 12% revenue: http://www.beyonddevic.es/2014/02/03/amazons-prime-problem/ http://www.wsj.com/articles/amazons-newest-ambitioncompeting-directly-with-ups-and-fedex-1474994758
- amazon fresh trucks: http://sco.lt/7i9FbN
- self-driving truck: http://fmcs.digital/blog/tesla-brings-self-driving-hardware-to-its-entire-fleet-see-the-video-for-a-glimpse-into-the-future-of-driving/
- amazon competes fedex: http://fmcs.digital/blog/jeff-bezos-amazon-wont-compete-with-fedex-and-purolator-usps-i-dont-believe-him/
- FBA 3PL: http://fmcs.digital/blog/27-tips-on-how-to-build-fba-strategy-via-cpcstrategy/