By: Andrew McCarthy
Jeff Bezos, founder, and CEO of Amazon is always looking into new things as a serial entrepreneur. Some of his more current Amazon advancements have been in the food industry when the company recently purchased the organic grocery chain, Whole Foods.
With its continued growth, Amazon is currently delivering 600 million packages a year. At the present time, the company has to subsidize their existing fleet of delivery vehicles by outsourcing much of the shipping to FedEx and UPS. Bezos is now looking into starting Amazon’s own delivery service so they may eliminate using FedEx and UPS altogether. Bezos has done some incredibly amazing things for Amazon and this could be another. Competing with UPS and FedEx may be one of the more difficult things to do as they have been monopolizing the delivery industry for several decades.
According to the Wall Street Journal, the service is going to start within the coming weeks in Los Angeles and expand from there. Amazon has the financial capability of pulling this off; that will not be the problem. Understanding the ins and outs of the delivery service industry is going to take a lot of time and patience for the company. As we know, even UPS struggles, especially during recent holidays. They have not been equipped to tackle the abundance of packages that needed a timely delivery and this is a company that has been around for more than a century. If Amazon does pull this off, they are going to just fine for deliveries as their company alone is going to be plenty to handle.
Although they have yet to commit any significant assets to this plan, they have begun the process. They have leased 40 planes, arranged for freight shipments from China and have gotten drivers ready, according to TIme Money Magazine.
The beginning of the Whole Foods delivery services started Thursday. With the new merger with Whole Foods, the shipping process will take on its own aspect of delivery services to be provided to the customers. Amazon will now allow you to order their usual selection from Whole Foods, as well as certain other foods, as part of “Amazon Now”. This service is only available in select cities, allows you to order what you need and get within the hour for $7 or two hours for free. “Shipping with Amazon” is not quite the same they are delivery actual packages from stores to customers without UPS or FedEx, hoping to reduce the 21.7 billion they spent on deliveries in 2017, according to their 10k. Both of these new delivery services are going to be tough to master but by doing so Amazon is going to see a major benefit for their company. The services will be only one of the many tests the company will have to overcome as they have done so many challenging things in the past and found ways to be the best at them. Already the richest man on earth Bezos revolutionary mindset is not stopping, do not expect anyone to jump him in that rank.