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Transportation Sector Under Threat From Amazon
Oilprice.com ^ | 06-09-2016 | Mike

Posted on 09/06/2016 8:29:28 AM PDT by bananaman22

Investors in the transportation sector are facing a sea of change thanks to the rise of online commerce. A major part of that change is Amazon.com, and the firms move towards using in-house transportation portends of more evolution to come. With thousands of shipments daily, Amazon.com is leading the way in creating its own in-house transportation via airplanes. This could potentially pave a path for other online retailers, as well as for the future development of other devices like drones which threaten companies that may not have the available funds to invest in them.

(Excerpt) Read more at oilprice.com ...


TOPICS: Business/Economy
KEYWORDS: amazon; commerce; investment; oil; trade; transportation

1 posted on 09/06/2016 8:29:28 AM PDT by bananaman22
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To: bananaman22

FWIW: Amazon also has its own equivalent of Uber - sign up as a driver, and you can deliver Amazon packages whenever you see fit.


2 posted on 09/06/2016 8:41:23 AM PDT by ctdonath2 ("If anyone will not listen to your words, shake the dust from your feet and leave them." - Jesus)
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To: bananaman22

I am not concerned about nonsensical arguments that are little more than the usual anti-capitalistic banter hiding behind a false concern for ‘the little guy’.


3 posted on 09/06/2016 8:41:52 AM PDT by MeganC (JE SUIS CHARLES MARTEL!!!)
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To: bananaman22
Amazon got burned twice because FedEx and UPS couldn't deliver the goods in time for Christmas.

Mind you, the solution could have been a lot simpler: set a date in early December where you can guarantee pre-Christmas delivery. I'd say December 7 as the latest date you can order for guaranteed delivery.

4 posted on 09/06/2016 8:47:29 AM PDT by RayChuang88 (FairTax: America's economic cure)
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To: bananaman22
I have a package coming any day now from Amazon. Online tracking shows that it went across the country using Amazon's shipping system and then entered the U.S. Postal System for the last couple of hundred miles.

Tracking also shows that it was held up for about a week for no apparent reason. I suspect that they held up the truck to Denver until they had enough other packages to fill it. I have heard that DHL and UPS also do this. When you opt for free shipping (orders > $50) you get what you pay for. :)

By developing their own transportation system and offering crappy service, they're probably saving pennies per package; but when you multiply this by perhaps a billion packages per year I guess it adds up.

5 posted on 09/06/2016 8:55:25 AM PDT by snarkpup (Hillary gets flak because she's being exposed; Trump gets flak because he's over the target.)
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To: bananaman22

The new commercial drone rules from the FAA that went into effect on the 29th specifically excluded Amazons drone delivery plan on several technical issues.

Not sure how quickly they will be able to get that up and running.


6 posted on 09/06/2016 8:56:44 AM PDT by KEVLAR (Liberty or Death)
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To: bananaman22

I’m doing a facelift on my BMW motorcycle. I ordered a new exhaust system that shipped from Milan Italy on the 22nd of July. DHL had it to my door on the 25th. I ordered stainless steel caliper bolts from New York at the same time and paid extra for USPS express delivery. They took five days.


7 posted on 09/06/2016 9:01:14 AM PDT by CrazyIvan (Socialists are just communists in their larval stage.)
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To: RayChuang88
Mind you, the solution could have been a lot simpler: set a date in early December where you can guarantee pre-Christmas delivery. I'd say December 7 as the latest date you can order for guaranteed delivery.

That is "old thinking" and guaranteed to lose customers to brick and mortar retail. Why should Amazon suffer because of the deficiencies of the package delivery industry?

Amazon is redefining retail. Competitors need to get on the train or get run over.

8 posted on 09/06/2016 9:27:10 AM PDT by CurlyDave
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To: bananaman22
Is Amazon aiming only at better pricing, terms, and conditions for its packages from its transportation partners, or is it planning to enter the sector and serve other customers so as to establish itself as a primary transportation company in its own right? Probably the latter because the transportation sector seems poised for a major shakeup due to an onrush of technological and business innovations. Jeff Bezos and Amazon would no doubt prefer to drive such change instead of hustling to keep up.

Most notably, the decline of traditional postal revenues and unending red ink make the US Postal Service a candidate for privatization. All of Amazon's plans are necessarily provisional, but Bezos may be angling to make a privatization offer for the USPS when the time is ripe politically. Who would want such a sick dog of an organization?

With a vast and comprehensive network of offices, facilities, and employees, the USPS has substantial value that is locked up by union work rules and obsolete procedures and restrictions imposed by law and its politicized governing board. Given a free hand and reorganized in order to compete as a part of Amazon, the USPS could become a potent force for innovation and cost savings throughout the economy.

For example, if open long hours or even 24/7, USPS post offices could become drop boxes for merchandize and packages, with coffee shops and convenience stores attached. Perhaps Bezos imagines a day soon when people agree to meet at their local Amazon to pick up their packages, mail, and groceries, get coffee and a bite to eat, and order new stuff from Amazon's universal inventory. Unemployed FedEx drivers might even be able to get jobs as drone wranglers and package clerks.

9 posted on 09/06/2016 10:04:58 AM PDT by Rockingham
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To: ctdonath2

>> Amazon also has its own equivalent of Uber - sign up as a driver, and you can deliver Amazon packages whenever you see fit <<

Wow!

I guess that explains why, when I now order insecticide or exotic spices or violin strings or a book from Amazon Prime, the package is usually delivered the next day (or day after) by an unmarked, mint-condition white van.

(And I get free shipping to boot!)


10 posted on 09/06/2016 12:09:24 PM PDT by Hawthorn
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To: Hawthorn

Amazon van ARE marked with the Amazon logo.

.


11 posted on 09/06/2016 12:10:50 PM PDT by Mears
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To: Mears

>> Amazon van ARE marked with the Amazon logo <<

Still waiting to see it in my neighborhood. Maybe Amazon is expanding so fast that they haven’t yet found enough sign painters to do the necessary jobs.

But anyway, no real complaints. My service from Amazon Prime has been very good.

(On the other hand, my wife bugs me once in a while about my trying to put local retailers out of business. So the exercise isn’t totally hassle-free.)


12 posted on 09/06/2016 12:30:14 PM PDT by Hawthorn
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To: RayChuang88

not a 2016 solution. Not everyone gets it together by early december. Amazon has found a niche. UPS will survive for business deliveries. It will impact the biggies to some extent however until by packages can be beamed directly to my home.


13 posted on 09/06/2016 12:32:43 PM PDT by morphing libertarian
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To: Hawthorn

I’m an Amazon person too.

It started with a Kindle as a gift about 7 years ago-—then came the gift cards,then the Amazon Visa,-—now the Amazon Fire.

My last 2 shipments from them were USPS and I wasn’t thrilled-—(long story).

..


14 posted on 09/06/2016 1:28:21 PM PDT by Mears
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To: Hawthorn
"...when I now order insecticide or exotic spices or violin strings..."

What are you putting together, Dr. Frankenstein?


15 posted on 09/06/2016 1:32:58 PM PDT by PLMerite (Compromise is Surrender: The Revolution...will not be kind.)
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To: bananaman22

Any near-term improvement will come from better coordination.
Rail is the key. Unresponsive but cheap. Get ahead of the ordering curve and save big. Amazon has never-before-seen knowledge to predict their orders.

I wonder if Sears and Roebuck could (or should) have started their own delivery service. I don’t think so.


16 posted on 09/06/2016 1:52:21 PM PDT by mrsmith (Dumb sluts: Lifeblood of the Media, Backbone of the Democrat/RINO Party!)
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To: Hawthorn

Yup, Amazon Flex is to deliveries what Uber is to taxis: https://flex.amazon.com
Pay is at least $18/hr, more for urgent delivery in some areas (Amazon Now promises some products order-to-deliverd in 2 hours). Driver must be at least 21yo.

So for someone facing the prospect of minimum wage and no other resources beyond a driver’s license & passable record...
One can rent a mid-sized SUV (enterprise.com) for a day for $68. That plus ~gas takes 4 hours to pay for. The rest of the day is profit, jump-starting the way toward one’s own vehicle.
As usual, the opportunities are out there - IF one is willing to actually show up & work, and refrain from screwing up employment & criminal records.


17 posted on 09/06/2016 2:17:31 PM PDT by ctdonath2 ("If anyone will not listen to your words, shake the dust from your feet and leave them." - Jesus)
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To: PLMerite
"...when I now order insecticide or exotic spices or violin strings..."

What are you putting together, Dr. Frankenstein?

Nothing special. Just a booby-trap for any neighborhood liberal who dares to mess with my Trump yard-sign.

18 posted on 09/06/2016 3:22:22 PM PDT by Hawthorn
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To: Mears
My last 2 shipments from them were USPS and I wasn’t thrilled-—(long story).

On a recent afternoon, I decided to buy a new phone (Samsung S7 Edge). I couldn't find the one I wanted on Amazon (I wanted support for both CDMA and GSM), so I ordered it from B&H Photo Video in New York (free next-day delivery). From Amazon, I ordered a T-Mobile SIM card for next-day delivery, and a case, Bluetooth headphones, and car charger for free two-day.

The following afternoon, the UPS lady delivered my phone, and the SIM card arrived soon after. I installed the SIM, transferred my phone number from Verizon, loaded my contacts from a downloaded .vcf, and I was up and running. The headphones, case, and car charger arrived the next day, right on schedule.

19 posted on 09/06/2016 3:50:24 PM PDT by cynwoody
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To: cynwoody

You were lucky you had UPS,my problem was USPS——2 deliveries to two different addresses——one was a gift.

Both messed up.


20 posted on 09/07/2016 6:32:20 AM PDT by Mears
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