Like television, publishing and the entire retail industry before them, companies like UPS, FedEx and DHL are about to feel the wrath of Jeff Bezos' wandering eye...
Amazon.com Inc. is preparing to launch a delivery service for businesses, positioning it to directly compete with United Parcel Service Inc. and FedEx Corp.
Dubbed “Shipping with Amazon,” or SWA, the new service will entail the tech giant picking up packages from businesses and shipping them to consumers, according to people familiar with the matter.
Striking mortal fear in business sectors en masse has become Bezos' most fun superpower. And the Seattle Sorcerer has come to clearly define his plan of attack on industries that he deems ready to be destroyed. After slowly letting everyone see that he can easily do something better (books), he slowly begins to threaten said industry by "secretly" experimenting with new products (clothes, home goods, original films and TV) and then launches money-losing pilot logistic programs in populous markets (groceries). Bezos then uses Amazon's ludicrous revenue to bleed costs as he chips away at his ever-weakening enemy. Then he closes the routine by acquiring said at a discount should they survive this far. Upon capturing an industry, Bezos then not-so-vaguely threatens anyone trying to disrupt him (BlueApron) by musing that he could destroy them with his mind (sooo Blue Apron).
And judging from what he's reportedly doing here, The Beez is playing by his rules with his new conquest...
Amazon expects to roll out the new delivery service in Los Angeles in coming weeks with third-party merchants that sell goods via its website, according to the people. Amazon then aims to expand the service to more cities as soon as this year, some of the people say.
While the program is being piloted with the company’s third-party sellers, it is envisioned to eventually be opened to other businesses too, according to some of the people. Amazon is planning to undercut UPS and FedEx on pricing, although the exact rate structure is still unclear, these people said.
Buut Bezos is also kind of cheating this time because UPS, DHL and FedEx are maybe only alive because Amazon deliveries are basically what mail is now. He hasn't needed to weaken these companies on his way to cutting their legs out from under them because they have grown so accustomed to leaning on him for survival.
Many are already wondering aloud if Amazon is actually ready to execute the plan of taking over its own delivery logistics, we would answer: Does it matter? Amazon will almost certainly hemorrhage money while it figures this whole thing out, using a now profitable Whole Foods acquisition and its juggernaut cloud services as a financial blood bag. And if Amazon ends up realizing months from now that it needs an established partner to help solidify its global parcel delivery business, it can go bargain shopping. Look at how the big two are taking the news that Amazon will be delivering its own shit...
Here's UPS' 1-year:
It seems hard to fathom that there's a lot of bounce in either's future at the moment, so it feels like Bezos has some options for how to deliver his death blow.
And that's really where we already are; Amazon has just only declared lazy war on the parcel delivery industry and we are already begging for Bezos to show mercy.