“Additional entrants into the marketplace are essential if we expect to see deliveries continue to arrive at the consumers door step on time. “The carriers aren’t able to expand their networks fast enough to keep up with demand,” she said. Rebecca Lannon, Client Solutions Manager for Shipware and an 11-year FedEx Revenue Management veteran, explained that while she does not see Amazon as a threat to major carriers at this point in time, as e-commerce continues to grow at a rapid pace and carriers reach capacity, it is becoming necessary for additional options in package delivery. And many of Martinez’ colleagues at Shipware had various takes on it as well. That is an apt way of describing it for sure, it seems. What a great way to control their costs!” Rob Martinez, CEO and co-founder of San Diego-based parcel consultancy Shipware LLC, put it this way: “My initial thoughts are that this is the Airborne Express model – but only delivering packages for one customer: Amazon. In any event, when this news broke last week, there was no shortage of feedback from people about what Amazon’s expanded push into gaining more control over its own deliveries really means. There are many reasons for that, too, including the density and physical assets and infrastructure such an endeavor like that would require, not to mention to financial commitment too, but I am pretty sure that part would not be a huge concern for Amazon. Is it significant enough for one to consider the notion that the global e-commerce bellwether could eventually force its way into the conversation with UPS and FedEx as a top parcel carrier with a true national delivery footprint? No, it is way too premature, as well as highly unlikely that would come to fruition, according to many industry stakeholders.
While it may not be a tremendous game changer, last week’s news that Amazon is taking steps to step up its plans to increase its package delivery and logistics services capabilities through the introduction of a new offering that, it said, will enable entrepreneurs to set up their own businesses to deliver Amazon packages, still remains notable and fairly significant too.
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