Originally Posted by
Birdsmash
Absolutely! However, I think AMZN is going to be a much bigger logistics player much quicker than most people give them credit for. This will be an interesting year to watch as their intentions become more clear.
FedEx or UPS can court the business' that funnel their business sales through AMZN. Afterall, logistics is simply that, logistics. These industry logistics competitors have competed with each other for decades. They competed with the USPS, DHL, and many others.
Each still delivers significant amount of AMZN business, and the percentage will decline in the future as AMZN builds its own networks, but a dynamic market. Its not a one way street.
Many seem quick to think they are going to decline to demise. Perhaps, but they also have the ability to siphon away business from AMZN on IT meeting customer and business side and take that to to their own web portals. AMZN relies on low cost labor models, historically, it will rise over time. Technology can be matched. Sure, they are impressive, and being shiny can drive some markets of logistics, but it is not likely to drive a FedEx or UPS out of business, especially if FedEx and UPS determine at some point to face off as competitors rather than seeing them as a customer as they are at present.
In its day, UPS was the disruptor, Fred was also a disruptor, now Bezos has the spotlight as a disruptor, welcome to the swimming pool.
Growing markets so not surprising AMZN looking how to maximize for AMZN.