Amazon has launched a freight brokerage platform that enables shippers to get instant quotes and match with a freight service:
FreightWaves. The online service, which is currently in beta in Connecticut, Maryland, New Jersey, New York, and Pennsylvania, enables shippers to get instant quotes and match with a freight service.Amazon isn't providing capacity on its own vehicles as part of the platform, but rather is brokering access to trucking partners on its network.
The sheer size of Amazon's e-commerce offerings places it in a strong position to attract shippers to its platform, as they are likely already doing business on the firm's core site. Amazon will controlof the US e-commerce market by the end of 2019 and 49% by 2023, making it a key strategic partner and revenue source for all its shipping partners.
No logistics player is safe from Amazon's ambitions in the space. The company is quickly building out shipping capabilities that could one day rival those of major firms such as UPS, FedEx, and C.H. Robinson. For example, in February 2018, the firm latched Shipping with Amazon , which is a service that sees Amazon picking up parcels from third-party merchants on its e-commerce marketplace and routing them through its own delivery network or other carriers.a program that enables businesses to set up their own delivery companies and bring customers parcels for Amazon. Known as Delivery Service Partners , the program allows companies to lease up to 40 Amazon-branded Daimler delivery vans.
If legacy players don't move quickly to counter Amazon's aggressive build out, they could soon see their respective markets upended by the e-commerce giant as it begins to offer services to non-Amazon customers.1. Sign up for the Transportation & Logistics Briefing to get it delivered to your inbox 4x a week. >>pass to Business Insider Intelligence and gain immediate access to the Transportation & Logistics Briefing, plus more than 250 other expertly researched reports.
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