Amazon identified itself for the first time as a transportation service provider in its recently submitted annual 10-K filing. It’s a significant development on the heels of months of reports detailing the company’s increasing efforts to build its own internal delivery and logistics business.
While Amazon made the point of stating it does not intend to replace but rather aims to supplement partners UPS and FedEx, there is growing evidence to the contrary, like the company’s recent purchase of French parcel provider Colis Privé to expand its business-to-consumer delivery capabilities in Europe. In fact, Amazon has also been quietly sliding a foot in the delivery logistics door through pilot programs and ventures like same-day delivery, Sunday service, and fresh grocery delivery. There’s even a fledgling unmanned delivery drone program now getting off the ground. Gaining direct control of delivery vehicles will allow Amazon to continue to innovate and differentiate itself from the competition by selecting and taking direct advantage of their most potentially profitable routes.
And what could this scenario mean for Amazon’s current logistic providers? It could result in sizable reductions in revenue and an increase in per-piece shipping costs in popular urban and suburban markets. While the exact extent and capacity of the usually reticent Amazon’s venture into logistics remains to be seen, Intelligent Audit remains prepared to help you leverage the shifting industry current to your advantage. Contact Intelligent Audit today for more information about our analytics and information management service.