Posted on 04/28/2019 1:20:43 PM PDT by amorphous
Today, freight brokers' and carriers' worst nightmare has come true: Amazon.com, Inc. (NASDAQ: AMZN) has quietly taken its digital freight brokerage platform live at freight.amazon.com, and it is undercutting market prices from 26 to 33 percent.
Early this morning, in a client note responding to Amazon's announcement that it would begin offering free one-day shipping to Prime members, Morgan Stanley equities analyst Brian Nowak made a cryptic prediction.
"We see AMZN's 1-day Prime shipping raising consumer expectations and increasing the cost to compete in e-commerce. Over the long term, we also see this as a Trojan horse for Amazon to grow its next disruptive business a third party logistics network," Nowak wrote.
Amazon already moves an enormous amount of freight through its distribution and sortation centers and has an extensive network of trucking carriers. For many industry observers, it was only a matter of time before Amazon leveraged the implicit network effect the total number of shippers and carriers who do business with Amazon and connected both sides of its business.
(Excerpt) Read more at msn.com ...
Marker lights OFF, I meant to say.
Translation, please.
vertical integration. Smart move, probably. I’m an Amazon Prime member and I’m glad to hear it. Wonder how long it will take them to start.
I’m paying $13.77/month for the service. I’ve been buying a lot of stuff and the savings in my time and their prices are worth it. I’m all for getting stuff sooner.
I also have been enjoying their Prime videos for a while. Been bingewatching Suits (not an Amazon original) but they do have good originals, e.g., Jack Ryan, Bosch.
Still haven’t taken advantage of my Whole Foods discounts, but most weeks they have stuff that I’m interested in. This week it’s halibut.
If your 401k is heavy in UPS or Fed-Ex make adjustments. ????
I cant answer that question, but I predict Amazon Freight will do well
once it gets up and running.
Interesting, I wonder if eBay will allow Amazon Freight into there shipping ecosystem. I have some doubts as eBay/PayPal take the normal fee rate on shipping charges = less money in their pockets. That is significant especially when shipping overseas.
nothing like the one world globalists on FR to weigh in.
I see this one day delivery as raising their Fullfillment costs way up. AWS can only keep bailing them out for so long as a profit center.
I use Amazon Prime for the TV. I run across things I really enjoy that I have never heard of before. Recently Watched the series Outrageous Fortune from New Zealand. Other things I put on as background while working like Tin Star which wasn’t good enough to hold my attention.
Sneaky Pete is getting ready to broadcast another season.
“Sneaky Pete is getting ready to broadcast another season.”
I forgot about that one. It’s a good show. Marvelous Miss Maisel getting stellar reviews, but it doesn’t sound like my kind of show. I think I may try Downton Abby (not a Prime original, but gets terrific critical acclaim).
Enjoy it while it lasts folks...
...when the remnant of brick and motars are on life support just watch Amazon pull a Walmart.
I tried watching Mrs. Maizel for one episode. It was okay, not really my kind of show, although to be fair I watch another episode. It was nice as a period piece or the late 1950’s, early 1960’s.
Trucking is stagnant in late fall and winter. They can leverage that but driving the costs of freight down further than what it is would be disastrous because the margins are already small and it is eating truck drivers faster than they can be produced. The era of professional, skilled and conscientious truck drivers is ending. They are being replaced by immigrants rapidly, willing to work 14-16 hour days for low pay.
If you like Downtown Abbey there are similar shows on Prime and one by the same writer. Dont remember names. Just look at the customers also watched link.
i also watch some of the PBS stuff when its free..like Durrells from Corfu, Poldark, and Grantchester.
i doubt amazon is looking to expand in the package delivery business. the last mile delivery is the most expensive and least controllable part of the haul.
sounds more to me like they’re going to broker no-touch truckload only freight. many of the independent load brokers (not drivers) are true scoundrels and make their money off the backs of their owner operator drivers. the good ones find niche markets (oilfield, electronics, etc) and make a name for themselves. i have a couple old friends i trained in the freight biz years ago who are doing this now and making well into six figures.
don’t even get me going on teamsters ... love the guys, hate the leadership. early in my freighting career (45-50 yrs back) i was my company’s rep on the grievance committee for the st.louis area motor carriers council. made me sick and turned me against organized labor pretty much forever. maybe it’s been cleaned up a little by now, but i’m long gone and far away.
Yeah, nothing like a foul-mouthed Jewish lady to make my evening’s entertainment extra-special. If I really wanted to hear some of that, I’d hang around my boss’s wife.
Amazon even beats all the Island stores and postal service/UPS/FedEx, etc., in places like Nantucket and Martha’s Vineyard. There is no way Amazon is going broke over shipping.
Bezos pays virtually no taxes, but lobbies for you to pay more.
That’s what Prime gets you: leftism.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.