Amazon set to launch own delivery service, competing with UPS & FedEx
Amazon is reportedly kickstarting "Shipping With Amazon," or SWA, a delivery service for other businesses that will take on industry leaders UPS and FedEx.
SWA will launch in Los Angeles within the next few weeks, initially servicing merchants that do business through Amazon.com, Wall Street Journal sources said on Friday. Some of the people indicated that it could expand to more cities by the end of 2018.
Amazon will allegedly try to undercut UPS and FedEx on pricing, which could shake up the parcel industry if the company can scale infrastructure. The company has been gradually moving into self-run deliveries by hiring drivers, setting up air cargo, and delving into ocean freight. It has even been toying with in-home deliveries for people willing to pay for a special lock and camera setup.
Apple currently relies on both UPS and FedEx for U.S. deliveries, and might be tempted to add Amazon to the mix if it will lower overall costs. At the same time, that would funnel money towards a chief competitor.
The two companies are increasingly stepping into each other's territory. Most recently Apple has entered the smartspeaker space with the HomePod, and laid the groundwork for a 2019 TV slate that could challenge Amazon Prime Video.
SWA will launch in Los Angeles within the next few weeks, initially servicing merchants that do business through Amazon.com, Wall Street Journal sources said on Friday. Some of the people indicated that it could expand to more cities by the end of 2018.
Amazon will allegedly try to undercut UPS and FedEx on pricing, which could shake up the parcel industry if the company can scale infrastructure. The company has been gradually moving into self-run deliveries by hiring drivers, setting up air cargo, and delving into ocean freight. It has even been toying with in-home deliveries for people willing to pay for a special lock and camera setup.
Apple currently relies on both UPS and FedEx for U.S. deliveries, and might be tempted to add Amazon to the mix if it will lower overall costs. At the same time, that would funnel money towards a chief competitor.
The two companies are increasingly stepping into each other's territory. Most recently Apple has entered the smartspeaker space with the HomePod, and laid the groundwork for a 2019 TV slate that could challenge Amazon Prime Video.
Comments
I use Prime and Amazon Locker as much as possible but often Prime products get marked 'Not available to be shipped to your address' so I have to use a street address which isn't convenient. But Amazon will dot every i and cross every t possible.
I think it was Mac Connection years ago that sent every order, no matter how small, by FedEx overnight. Great while it lasted, but it couldn't.
UPS will sometimes run behind and claim that "the receiving business was closed" (my address is residential) and deliver the next day.
The good thing is that I rarely have to pay for Amazon Prime as a result. Every time a delivery is late, Amazon gives me either a discount or a free month of Prime. I don't mind waiting an extra day for a package to arrive.
2) Have you considered how many packages Amazon ships through these services? Are you familiar with economies of scale? What if Amazon pulling out of, say, UPS, means they can't pack transport vehicles to the same extent, or if revenue goes down that they have to close stores and other facilities, lose staff, or cut hours of operations to try to stay in the black? What if this results in having to raise prices because they've lost their largest customer, and one that kept things moving through the channel, so now you not only have higher costs, but also slower delivery and worse customer service? Think of what Amazon has done to the B&M stores. You'd think that they'd have great customer service since it's the one thing they can offer that Amazon can't, and yet Amazon's chat-based CSRs have been great and going into a Staples has been a nightmare, IMO.
Seriously what does Amazon do? They are just a giant middle man. That's it.
That means it leaved the depot around 10:30 and gets to me late afternoon.
http://www.wfaa.com/news/local/denton-county/amazon-packages-dumped-in-justin-neighborhood/515058827
But that's just me
Somehow I doubt Apple will be stepping into this territory.
I've had nothing but trouble when they use their in house (aka drivers who couldn't pass a Lyft background check) service for deliveries. I've called, emailed, etc and they always promise to de-prioritize AMZL but I keep getting crap through them (late, sometimes not at all).
I have essentially stopped using Amazon for personal use but still have to use if for purchasing through work.
I can't stand them - also to someones earlier point - they are now opening brick and mortar bookstores because irony is dead.
fcuk Amazon.
james