Originally Posted by
TrojanCMH
Remember that Amazon doesn’t need to make money in their shipping and logistics, FedEx and UPS do. All they need to do is lose less money shipping in-house than what it would cost to ship with UPS/FedEx/USPS and it’s considered a success. And if they can figure out how to make money by offering their service to other customers it could get ugly. I don’t think they’re a huge threat at this point in time as they’re too small but I wouldn’t count out a company as big as Amazon is. They have a track record of shaking up different industries and they have a ton of money laying around.
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I can’t see Amazon moving their logistics business beyond their own in house e-commerce shipping. How do you make a million dollars? Buy an airline for a billion. If you research amazon you’ll see how many failed business ideas and instustries they tried to steam roll and didn’t. Success in one area doesn’t translate to all. Bezos has admitted they’ve lost hundreds of millions on failed things...lest we forget that Amazons success came from an underdeveloped no-completion market. Breaking into the transportation world is not so easy...
https://www.thestreet.com/story/13364106/1/here-are-10-of-amazon-s-biggest-failures.html