The advantages of selling on online retail platforms are clear. There is no need for an actual store anymore, merchandise is available to customers 24/7, costs can be saved and, if the website is big enough, visitors are guaranteed. These advantages attracted countless retailers, and this is what allowed, for example, Alibaba or Amazon to grow into the giant it is today.
The luxury for retailers of only being present online is an opportunity for online retail platforms, though, and Amazon is taking advantage of it.
The company has assets many shipping service suppliers can only dream of: financial means and a secured shipment form dependent clients along with a trusted brand. Amazon is therefore now offering its sellers and soon also third parties shipping services. Organizing shipments becomes simpler for the online retailers and thanks to economies of scale, Amazon can offer a price that competes with traditional logistics companies.
By now, Amazon has invested in last-mile delivery, trucking, air, and ocean freight and most recently it also bought Ring, a smart doorbell producer to be able to ship directly into one’s apartment.
Amazon is not the only tech-giant, though, that aims to reshape logistics. Uber, the most valuable startup in the U.S., is using innovative technology to offer better services than current shippers.
Besides Uber Eats and Uber Rush, which focus on last-mile delivery, Uber launched Uber Freight which matches carriers and shippers like its original ride-hauling app. The company also bought Otto, an autonomous truck producer and has been working on developing driverless trucks that can be used while providing logistics services.
How will all this influence the logistics industry as we know it? The below infographic summarizes what Amazon and Uber have done so far in this segment. Can an online retailer and a ride-hailing app become the next shipping giants, or does it take more to disrupt such a valuable and big industry?
Infographic source: https://trademachines.com/info/amazon-uber/