Amazon Logistics

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9 Reviews2.2/5
A predictable and smart move by Amazon, building a fleet to compete against UPS, FedEx, and other last-mile delivery services. The big question: When will Amazon roll out their drone delivery in mass? πŸ€”
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@rrhoover not sure, but I hope they bring it to cali, tenn, even conn. if they did it en masse, that'd be cool, too.
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This is the exact model that FedEx Ground uses. It might say FedEx on their truck, but look closely and you'll notice that each truck is operated by an independent company or contractor.
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@chadwhitaker interesting--I wasnt aware.
@chadwhitaker Which is why Fedex Ground is such a horrible service. 2nd attempts cost the driver not FedEx. Coming up the stairs costs the driver. Getting sick costs the driver. Heavy/Expensive packages are frequently left on the street without even ringing the buzzer; in NYC! And Amazon's kpi's on stuff like Seller Fulfilled Prime are a constant threat to your ability to continue. Very litrtle profit and no room for error or you lose you business. Imagine if that meant losing an investment in trucks too... Looks good on paper. In reality this is a huge risk for an "Entrepreneur"
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@chadwhitaker I understand that the model is more the one of Uber where everybody can become a delivery worker. Though the difference is probably that a lot people have a car vs. much fewer own trucks. @1p95street An Uber like review system would improve the delivery experience. The problem that risks are being outsourced to the workers could partly be solved by Amazon's health insurance program. Another aspect, 1 out of 10 packages delivered in the US is from Amazon. Take this share from the competitors and they get a huge problem, last-mile delivery is a unit economics business. Might be you're right and it wont work. Maybe the strategy is confidence for pricing negotiations with FedEx, UPS...
So it begins.
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I wonder if this will be limited to independent companies (like FedEx and others) or would go to a more shared-economy style allowing even individuals to deliver packages too.
Wow Bezos does it again. There seems to have always been a bottle neck in the last mile space logistically speaking. This could provide more jobs as more products are being sold online than ever before. Good for Amazon!