Is Amazon (AMZN) Venturing into the Trucking Business? - Zacks
If rumors are to be believed Amazon.com Inc. is likely to bring about a significant change in the logistics industry as the e-commerce giant is secretly working on an Uber like app to pair truck drivers with shippers, as reported by Business Insider. Citing a person with direct knowledge of the matter, the financial news agency revealed that the company may launch this "Uber for trucking" app in the summer of 2017.
Amazon’s foray into the trucking business will enable it to have full control over the entire supply chain. Apart from this, by tapping into the $800 billion trucking industry, Amazon will be able to broaden its reach as a logistic company.
Our Take
Timeliness has become one of the most important factors in the e-commerce space. As competition intensifies, Amazon needs to keep pace with others in the space, if not stay ahead of them. Creating a logistics service could help it to dramatically cut costs.
If rumors are to be believed Amazon.com Inc. is likely to bring about a significant change in the logistics industry as the e-commerce giant is secretly working on an Uber like app to pair truck drivers with shippers, as reported by Business Insider. Citing a person with direct knowledge of the matter, the financial news agency revealed that the company may launch this "Uber for trucking" app in the summer of 2017.
Amazon’s foray into the trucking business will enable it to have full control over the entire supply chain. Apart from this, by tapping into the $800 billion trucking industry, Amazon will be able to broaden its reach as a logistic company.
Our Take
Timeliness has become one of the most important factors in the e-commerce space. As competition intensifies, Amazon needs to keep pace with others in the space, if not stay ahead of them. Creating a logistics service could help it to dramatically cut costs.
