Amazon has been rumored to be stepping into the global parcel delivery space for some time now by lauching its own in-house logistics service. Amazon does some local shipping on its own, but most of the deliveries are done through third party services, like UPS or FedEx. That means third party shippers could potentially lose one of its biggest customers, if Amazon does end up launching its own delivery service. While we still don’t know what exactly Amazon has in mind, at least one of its shipping partners is saying the writing on the wall is clear.
Amazon is our biggest customer. It is in the process of becoming our largest competitor,” said Philippe Wahl, the CEO of the French government-owned parcel company La Poste, according to French English newspaper The Connexion.
Wahl’s comment was made in response to a question about Amazon’s acquisition of Colis Priv , a French private parcel delivery company. Amazon already owns 25% of Colis Priv , but has agreed to buy the company’s remaining 75% stake in October. The deal is expected to close in the first quarter of this year.
Some analysts believe Amazon has much broader ambitions. Baird Equity Research analyst Colin Sebastian says Amazon’s shipping service will start with its own deliveries, but will likely expand to other companies, getting itself into the $400 billion delivery and logistics market.
“They will start small, mostly to add capacity for their own business, but then, over time, as they gain more expertise, they will offer extra capacity to other companies,” Sebastian told us.
When Amazon’s Olsavsky was asked about its logistics plan during earnings call, he simply shrugged it off as a complementary service, saying it’s intended to supplement, not replace, existing delivery companies.
“What we found in order to properly serve our customers at peak, we ve needed to add more of our own logistics to supplement our existing partners. That s not meant to replace them,” Olsavsky said.
Despite the assurance, there are still a lot of indications that point to the other direction. For one, Amazon has started to call itself a “transportation service provider” for the first time in its latest annual report filed last month.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
- ^ by lauching its own in-house logistics service (www.businessinsider.com)
- ^ according to French English newspaper The Connexion (www.connexionfrance.com)
- ^ to buy the company’s remaining 75% stake in October (www.telecompaper.com)
- ^ not replace, existing delivery companies. (www.businessinsider.com)
- ^ for the first time in its latest annual report (www.businessinsider.com)
JAMIE Proctor hopes his promising opening date with City can turn into something more meaningful. After scoring on his debut at Port Vale, Proctor meets the home fans for the first time against in-form Barnsley tonight. The striker’s bullet header dug out a valuable point on Saturday and earned him instant adulation with the travelling support.
He wants to build on that at Valley Parade and further justify Phil Parkinson‘s request to take him from Fleetwood in the Devante Cole deal. Proctor said: “It’s always good to hear the supporters are on your side from the first game. I’m sure more goals will repay them.
“I’m just here to do a job. I’ll do what I can while I’m at the club and hopefully that’s a lot longer than a month. But we’ll have to see what comes of it.
“It all came round quite quickly about going out on loan but it was a no-brainer for me.
“I’d played the last couple of weeks but Fleetwood have signed a couple of players and said I wouldn’t be getting as much game time as I’d probably want at this stage of the season.
“With my contract running out, it’s a chance for me to impress and hopefully I can do that.
“Saturday was a dream start. All strikers want to score a goal on their debut and get a positive result. Now I’m really looking forward to playing at home, especially as it’s a Yorkshire derby.”
Proctor is expected to deputise again for James Hanson, although he is back in the squad after recovering from the thigh injury he suffered in the Oldham game ten days ago. The 23-year-old admits he has a tough act to follow and said: “They are big shoes to fill. I’ve played against Hans quite a few times and he’s always done well.
“He’s a legend at the club and deserves to be called that because of the important goals he’s scored and the performances he puts in.
“But I knew coming to Bradford there is a lot of quality in the team and a real spirit. That showed against Port Vale after the sending off.
“Most sides would have gone under at that point. We’re down to ten men and losing 1-0, we could have just settled for the defeat and used it as an excuse.
“But I knew they aren’t like that here whatsoever. Even the lads that came on put a shift in and really dug in for the team. It was a real squad effort and that point will be a valuable one if we can follow it up now.”
Proctor has renewed his partnership up front with Billy Clarke after two years together at Crawley. Facing Barnsley tonight will feel equally familiar he played at Oakwell earlier this month in the Johnstone’s Paint Trophy area final.
“I’ve played against them a couple of times already and Barnsley are a decent side,” he said.
“They were struggling at the start but have picked up massively. They’ve got a few key players back, had a great result at the weekend and it will be an extremely tough game.
“But we’ll be fully confident going into it after the way we came back and hopefully we can get the win.”
Amazon intends to buy the remaining 75% of French delivery company Colis Priv , according to The Seattle Times. The deal will close early this year, according to the report, and the company will continue to deliver packages and parcels for clients that aren’t Amazon. A spokesperson for Colis Priv stressed that Amazon would continue to operate it as a separate business, but the plans do align with Amazon’s growing expansion into logistics and delivery.
Amazon has been operating its own air freight service in Europe, according to a report from The Evening Standard. The company has leased air miles on a single plane that flew from Germany to Poland to the UK repeatedly, delivering packages and parcels.
A report from The Wall Street Journal highlighted the strained relationship between UPS and Amazon, its largest client, in America. According to the WSJ, the Amazon account at UPS is worth around $1 billion ( 650 million).
Amazon has been looking to control more of its own delivery and logistics networks, especially as other firms such as UPS or FedEx often struggle to fulfill demand during busier seasons, such as Christmas.