Amazon to launch a massive delivery service to compete with FedEx and UPS.

[TheWorldNewsOrg]

Amazon to launch a massive delivery service to compete with FedEx and UPS. The service will be called Shipping With Amazon and will be one of the largest market disruptions we’ve seen in years. FedEx / UPS currently have a combined market cap of $160B https://t.co/w5ZTohAdqu pic.twitter.com/BwnN5NXwEj

— Michael Quoc (@michaelquoc) February 9, 2018

via .ORG

World News

[Jack Ryan]

Amazon has perfected disrupting industries as the ultimate side hustle (it was between that and babysitting). And now, it’s testing delivery services in Los Angeles, positioning itself to undercut FedEx and UPS.

The service, dubbed “Shipping with Amazon,” is offering business-to-door delivery for the company’s third-party merchants (read: sellers on Amazon). Although, it hopes to cover all types of businesses as it expands beyond LA.

Naturally—like any other Amazon announcement—it sent UPS’ and FedEx’s stocks tumbling.

 

And while we shouldnÂ’t be shocked by that...well...weÂ’re still kind of shocked

 

Amazon has seemingly entered “invincible” status, where a simple announcement is enough to cripple future competitors.

• Remember groceries: Its acquisition of Whole Foods intitially wiped out a combined $12 billion in market cap from six competitors.
• And health care: Securing pharmacy licenses in 12 states was enough to send some pharmacy stocks down 10%. Or what about AmazonÂ’s new partnership with JPMorgan and Berkshire Hathaway, when insurance providers faced a similar fate.
• Then there was Best Buy: Amazon announced a Geek Squad competitor, sending the stock down 7% immediately. 

The point is, as famed tech observer Scott Galloway puts it—in a truly capitalist economy, one company shouldn’t hold such market-moving power. 

 

That said, FedEx says bring it on...

 

...by calling attention to a video showing just what Amazon is up against:

And while it took FedEx multiple decades to build up this infrastructure, Amazon feels ready to tackle the challenge. ItÂ…

• Already offers delivery for some of its own products in 37 U.S. cities
• Leased 40 aircrafts
• Has a framework for in-home delivery
• Offers ocean freight
• Has a patent on a blimp-like cargo hub
• Expects to be able to undercut the industry in pricing

The bottom line: No company should be big enough to move markets, but in Amazon’s case, there might be a reason for it.

http://morningbrew.cmail20.com/t/j-l-bxlkkt-yhyuhjkhdk-p/