Amazon sold $164 billion worth of stuff on its website this year. America’s two largest delivery companies—UPS (UPS) and FedEx (FDX)—got all that “stuff” from sellers to buyers. But the days of these companies are numbered…
It spent $27 billion to ship stuff last year!But over the past couple of years, Amazon has been working on a project that should terrify UPS and FedEx...Today, Amazon operates almost 400 distribution warehouses in the US alone. And these are no run-of-the-mill post offices.
So many folks conclude Amazon’s creation of its own delivery service won’t hurt these companies too much.Back in 2000, Amazon was on its way to dominating online shopping. As its website exploded in popularity, so too did its need for computing power. But I’ll bet anything that Amazon will soon start selling its delivery services to others—just like it did with its cloud business.Amazon recently launched its new “Shipping with Amazon” service.
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