Amazon is such a one-size-fits-all company that it might be hard to find a single company or industry that Amazon is not competing with. Recently, in a regulatory filing, they listed “Transportation and Logistics”companies in the list of what it views as competition, right next to “physical, e-commerce, and omnichannel retail… digital content and electronic devices, web and infrastructure computing services.”
So what does this mean?
This may seem odd, as they rely on shipping companies like USPS, UPS, and FedEx in order the ship the items that it has on its sites. However, due to the Free Shipping that they provide with Amazon Prime, they have lost upwards of 9 billion dollars in the last quarter alone. As a result, they are working in order to get their own shipping service, to at the very least supplement the expenses from shipping via other companies.
Amazon announced last year that they were working to start up their own delivery service, so that they can have more control over their company. For instance, when someone orders two-day shipping from Amazon Prime, sending those items to a third party to ship can cause problems. For instance, if something gets lost during delivery, or delivers late, it can be a burden on Amazon’s Customer Service, who feel stuck between a rock and a hard place.