Amazon set to launch its own delivery service

by Susie Olson February 10, 2018, 6:28
Amazon set to launch its own delivery service

The company is about to finally launch its new shipping service for businesses in LA in the "coming weeks", according to a new report from The Wall Street Journal.

The threat of Amazon building is own delivery service has percolated since at least 2014, after a troublesome 2013 holiday delivery season plagued by delays of UPS and FedEx shipments due to an overload of packages.

Meanwhile, Amazon mentioned how shipping is critical to its business in its annual report.

It's hard to know how this will affect UPS and FedEx, though the latter suggested Amazon was no more than 3 percent of its business by revenue in a recent earnings call.

UPS and FedEx also consider Amazon an important customer. Entities from Netflix and the U.S. Central Intelligence Service now employ those services.

UPS had a rocky holiday season late a year ago, as it underestimated the crush of online shopping during so-called cyber week right after Thanksgiving.

Meanwhile, Amazon has leased 40 airplanes, begun arranging ocean freight shipments from China to the US, and built up a corps of delivery drivers. About 4.17 million shares traded or 139.35% up from the average. Last year, the company spent as much as $20 billion ensuring its products made it to customers. And if Amazon starts delivering to businesses, it may undercut the incumbents on rates, he said.

Amazon as a customer accounts for less than 10 percent of total revenue for UPS and 4 percent of revenue for FedEx, according to Wolfe research.

As independent analyst Ben Thompson put it, Amazon's ultimate goal "is to take a cut of all economic activity".

Pentagon confirms it is planning a huge military parade
The bill proposed about US$66 billion be spent on USA military operations in Afghanistan, Iraq, Syria and other countries. U.S. media linked the plan to Mr Trump's admiration for a military parade he attended in Paris in July past year .

The company would send SWA drivers directly to retailers and warehouses to pick up parcels, cutting out other delivery services. FedEx Co. has a twelve month low of $182.89 and a twelve month high of $274.66.

Citi analyst Christian Weatherbee said Amazon hasn't yet committed significant assets to a new delivery program.

Initially, SWA will be offered as a service to merchants selling goods on Amazon's marketplace.

Amazon has narrowed its list of potential communities for its massive second headquarters to a final grouping that includes Atlanta and 19 others in the USA and Canada. By handling deliveries themselves, Amazon can theoretically speed up delivery times-and drive more people to buy Prime memberships.

FedEx released a statement in response, which read, "The headline in today's Wall Street Journal demonstrates a lack of basic understanding of the full scale of the global transportation industry".

The service, which will entail Amazon picking up packages from businesses and shipping them to consumers, could expand to more cities as soon as this year, the report said.

Amazon's muscle and influence beyond retailing have been very evident lately. The effort will roll out in Los Angeles.

Green Square Capital Llc, which manages about $1.82B and $554.35M US Long portfolio, decreased its stake in Ipg Photonics Corp Com (NASDAQ:IPGP) by 3,400 shares to 2,775 shares, valued at $514,000 in 2017Q3, according to the filing.


TOP News

The Breakdown: A statistical look at round one of the Six Nations
The match will be the first time Te'o has played since October, with the New Zealand-born rugby league convert partnering Owen Farrell in midfield.

7 iconic moments of Cristiano Ronaldo's career
The 26-year-old led his national side Brazil to become the first team to qualify for the FIFA World Cup in Russian Federation . "It's harder to defend against Lionel Messi than Cristiano Ronaldo ", Silva said in Spanish publication Sport .

John Stamos Marries Pregnant Fiancée Caitlin McHugh
This is John's second marriage - he was previously Wednesday to actress Rebecca Romijn from 1998 to 2005. The two are also expecting their first child together later this year.

City's Guardiola left frustrated by 'most British' Burnley
Jack Kennedy said: "Congratulations sterling on the worse miss I've ever see". He's scored more last-minute goals for us than anyone in this league.

US Trade Deficit Is Wider Than Any Month or Year Since 2008
Imports advanced 2.5 percent to $256.5 billion, boosted by record US purchases of consumer goods, capital goods and food products. The politically sensitive US-China trade deficit increased 8.1 per cent to a record $US375.2 billion past year .

US Threatens Venezuelan Oil Embargo, Would Support a Military Coup
An oil ban against Venezuela has been rumored in the past but the sanctions have only involved Venezuelan government officials. Secretary of State Rex Tillerson seeks stronger bilateral, trade ties with Peru, foreign affairs analyst Juan Velit affirmed.

Limited Edition Lava Red OnePlus 5T goes on sale tomorrow
Sure enough, we now have two brands that just announced this very fact: the OnePlus 5T and the much more affordable Honor 7X. Unfortunately, there is a limited number of Lava Red units available, so you have to grab it while supplies last.

Chris Hemsworth isn't tempted to revive Crocodile Dundee
This new campaign will address this conversion challenge", said Minister for Trade, Tourism and Investment Steve Ciobo in the statement.

Jerome Powell sworn in as new US Federal Reserve chair
Powell, who has been on the Fed board since 2012, was tapped by Trump on November 2 after a highly public search for a new Fed chair.

Safety system install had signals out during deadly SC train crash
In December, three people were killed and dozens more injured when another train derailed near DuPont, Washington. The NTSB said investigators recovered video from a forward-facing camera on the Amtrak train .