Originally Posted by tnkrdrvr

The challenge for Amazon getting into air freight and last mile delivery has always been the tremendous upfront costs to build out their network and the high ongoing cost of labor. It’s always been low margin relative to the software business. UPS has led the sector with a little over 10% profit margins historically. That doesn’t leave much room to build a profitable business and the savings of bringing their shipping in house will take many years to pay off the steep upfront costs. I don’t think Amazon will pull out of the business, but I think their appetite for further capital investment in it may shrink.