Amazon to be largest U.S. delivery service

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11-29-2021, 06:33 AM

iahflyr

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Amazon to be largest U.S. delivery service

Amazon poised to pass UPS, FedEx in U.S. deliveries by early 2022, exec says
https://www.cnbc.com/2021/11/29/amaz...pyToPasteboard

11-29-2021, 07:20 AM

mcfadden

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Quote:

Originally Posted by iahflyr

Amazon poised to pass UPS, FedEx in U.S. deliveries by early 2022, exec says
https://www.cnbc.com/2021/11/29/amaz...pyToPasteboard

They don't even have very many airplanes.

11-29-2021, 08:22 AM

hercretired

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should say

".....using outsourced labor, Amazon has become the largest US Delivery service"

11-29-2021, 09:25 AM

airbus300

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20211129_131747.jpg
look at the trend line.

11-29-2021, 09:26 AM

tnkrdrvr

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Quote:

Originally Posted by iahflyr

Amazon poised to pass UPS, FedEx in U.S. deliveries by early 2022, exec says
https://www.cnbc.com/2021/11/29/amaz...pyToPasteboard

The key to their rapid growth has been being both the customer and the service provider. However, their packages are low margin. The article may as well say that Amazon seeks to dominate least profitable segment of delivery business. This is not a future cash cow the way web services was. This is a way to minimize shipping costs from their business model.

11-29-2021, 10:15 AM

GoodRide

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Quote:

Originally Posted by tnkrdrvr

Minimizing costs is kind of a fundamental part of business. Are you assuming that they won’t democratize their lower delivery costs to outside businesses who are seeking to do the same thing?

11-29-2021, 10:38 AM

nitefr8dog

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Quote:

Originally Posted by mcfadden

They don't even have very many airplanes.

Just spitballing here......my guess is UPS has alot more trucks than airplanes.

11-29-2021, 11:02 AM

tnkrdrvr

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Quote:

Originally Posted by GoodRide

Minimizing costs is kind of a fundamental part of business. Are you assuming that they won’t democratize their lower delivery costs to outside business who are seeking to do the same thing?

You are making the mistake of assuming that they can deliver a package cheaper than their competitors. All they have done so far is show their system can deliver that package for less cost than their competitors charge, which includes a profit margin. If they start competing for outside business they will want some profit margin. How much? I don’t know, but compared to their cash cow cloud business, it would be abysmal. At some point Amazon will decide if the delivery business is helping improve the bottom line or should be spun off. Not my circus or monkeys, should be entertaining to watch.

11-29-2021, 12:46 PM

GoodRide

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Quote:

Originally Posted by tnkrdrvr

IMO, the biggest takeaway from becoming the largest delivery provider isn’t whether Amazon is concerned with achieving AWS sized profits in logistics; it’s that they they own the scale argument. They are about to accomplish this feat as their own largest customer, while still outsourcing a portion of their business. The bottom line question has already been answered; of course reducing their shipping costs helps their bottom line, and if they can further subsidize their own deliveries by offering extra capacity to third parties, they will probably do that too. They invested $40B last year into logistics..and it seems to me they are structuring their investments with the goal of being unbeatable in the war of shrinking margins. It will be Amazon’s scale that eventually becomes a profit center for them.