Amazon (AMZN) Declares War on FedEx, UPS, USPS

Amazon Declares War on Fed-ex UPS USPS
Amazon Declares War on Fed-ex UPS USPS
Amazon Declares War on Fed-ex UPS USPS
Amazon Declares War on Fed-ex UPS USPS

Amazon is such a one-size-fits-all company that it might be hard to find a single company or industry that Amazon is not competing with. Recently, in a regulatory filing, they listed “Transportation and Logistics” companies in the list of what it views as competition, right next to “physical, e-commerce, and omnichannel retail… digital content and electronic devices, web and infrastructure computing services.”

So what does this mean?

This may seem odd, as they rely on shipping companies like USPS, UPS, and FedEx in order the ship the items that it has on its sites. However, due to the Free Shipping that they provide with Amazon Prime, they have lost upwards of 9 billion dollars in the last quarter alone. As a result, they are working in order to get their own shipping service, to at the very least supplement the expenses from shipping via other companies.

Amazon announced last year that they were working to start up their own delivery service, so that they can have more control over their company. For instance, when someone orders two-day shipping from Amazon Prime, sending those items to a third party to ship can cause problems. For instance, if something gets lost during delivery, or delivers late, it can be a burden on Amazon’s Customer Service, who feel stuck between a rock and a hard place.

Other times that Amazon has revolutionized the Transportation and Logistics sector.

Back in 2013, Amazon got on the hype train when it announced that it will utilize drones in order to deliver packages to people instead of the normal delivery service. However, due to regulatory issues, this has not become as popular as he had hoped.

Also, just two weeks ago, Amazon announced that they are going to release a new shipment option called Amazon Scout, that they are testing in Snohomish County, Washington. These are small robots, the size of a cooler, who will travel to people’s houses during the day, and deliver packages directly to people’s doors.

Amazon getting into the transportation industry may seem like a blow to other companies, like FedEx and USPS. However, other companies do not seem to mind. Brie Carere of FedEx recently stated: “I’m not worried about Amazon,” she said. “They are not our largest customer, and we are not dependent on them from a growth perspective.”

So this will be interesting to see, and if the future will be full of drones and small delivery robots.


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