Amazon Turns Logistics Into A New Business, Up Against UPS And FedEx
Amazon has opened its entire logistics network to outside companies — sending shares of UPS and FedEx tumbling and marking the latest example of the tech giant under CEO Andy Jassy turning its internal capabilities into products and services for sale.
Does this smell just a little bit like, I dunno, the beginnings of an illegal monopoly? Or maybe it's because I'm a Democrat, and thus paranoid.
Amazon Supply Chain Services, announced Monday morning, brings together the company’s freight, distribution, fulfillment, and parcel shipping operations into a single offering available to any business, regardless of whether they sell on Amazon’s marketplace.
Initial customers include Procter & Gamble, which is using Amazon’s freight network to transport raw materials; 3M, which is using it to move products to distribution centers; Lands’ End, which is fulfilling orders across sales channels from Amazon’s warehouses; and American Eagle Outfitters, which is using Amazon’s parcel service for last-mile delivery.
The service can fulfill orders placed through platforms that compete with Amazon’s own marketplace, including Walmart, Shopify, TikTok, and others.