Parcel delivery #disruption coming with #Amazon building ‘#Uber for trucking’ app and self-driving trucks 

Amazon is building an app that connects truck drivers with shippers, getting itself into the $800 billion trucking industry.

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A key piece of eCommerce and retail has to do with delivering packages from warehouse to customer homes or offices. Amazon spends 12% of its revenue for shipping and is expected to ship more volume than FedEx in 3 years. To reduce this cost and improve customer service by allowing more frequent and faster delivery, Amazon has been doing a number of things:

  1. putting trucks on the road with its AmazonFresh grocery delivery service;
  2. building delivery infrastructure between its warehouses and distribution centers and delivery spokes;
  3. now it is planning to become a broker between small parcel delivery providers in a UBER like model (this article)
  4. self-driving vehicles have been targeting trucking industry as their primary focus, with UBER recently investing in startup OTTO and demonstrating a 2000 case beer delivery via self driving truck

Combine all these innovations and you have a profound disruption in the delivery and logistics industry. Retailers should now consider Amazon no longer as an online marketplace and third-party logistics company (3PL) but also as a parcel delivery solution provider that can compete FedEx and UPS provide last-mile delivery solutions and eliminate the need for retailers to maintain or lease their own delivery vans and trucks.

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Farid Mheir