122. Amazon News; Uberization of Local Deliveries?

AmazonBusiness, Concierge Customer Service, Distribution Industry Sales, Distribution Strategy, Index, Profit Analytics, Service Value Innovation Guidelines, Supply Chain Partners, WayPoint Analytics

“The future is already here — it’s just not very evenly distributed.” – William Gibson

AMAZON’S LAST MILE, LOGISTICS NEWS

    1. (Oct. 10) “The USPS seeks a 12.3% price increase” on the 40% of AMZ’s packages that it delivers. AMZ suggests that the projected $1B cost increase won’t matter in 2019. (?)
    2. (10/17) Hiring “Seasonal Delivery Associates” (for $17.25/hour). Doesn’t this compete with AMZ’s new “Delivery Partners” (6/28)? The Partner start-ups will use the 20K (initially 4.5K) of leased Mercedes Sprinter Vans. Perhaps: a) shipments are growing faster than total delivery capacity. Or, b) AMZ believes it can innovate lower last-mile costs than the USPS, etc.
    3. (11/5/18) Free holiday shipping for all (matches Target’s promotion). AMZ will win any battle of fulfillment-cost attrition because: a) It has best customer clickstream advertising income and b) most efficient warehouse costs.

  • Resellers in LA can now use “Shipping With Amazon” (2/8/18) to ship goods to AMZ Fulfillment centers at further discounted rates (11/9): 50% less than FedEx and UPS! Controlling reseller replenishment to AMZ warehouses: a) insures better fill-rate service and productivity/package from fulfillment centers; and b) adds more volume to their AMZ Flex-driver, cloud platform.

 

Do these news-dots add to a vision? Can AMZ invent breakthrough metrics for last-mile logistics; and, an “Intra-City, Last-Mile Delivery Cloud Platform”?

LAST-MILE DELIVERY PLATFORM (LMDP)?

A digital platform business-model (like Uber’s, etc.) is where parties meet digitally to exchange value. The creator/host gets fees. Amazon has many reinforcing, winner-take-all platforms that add to increasing monopoly capabilities. Are they now creating a LMDP for some cities that distributors could both participate within and be challenged by?

More Thoughts about LMDPs

  1. Key goals for a LMDP: Deliveries (and their value) per route-mile must get dense enough to: lower cost-per-delivery and response-times to breakthrough levels. Say: 30 minutes for click-to-receiving at a cost of $2-4 cost!
  2. Platform density contributors (besides soaring, fulfillment-center shipments)? Ship-to stores (like AMZ’s tires to tire installers); lockers; (maybe someday) drones gliding down from elevator towers to job sites and apartment balconies; etc.
  3. Densest cities are most promising. AMZ is experimenting in London and LA.
  4. When will other shippers (beyond resellers) be invited on to AMZ’s existing LA platform?
  1. If so, will distributors (and contractors) allow their spare or off-hour drivers and vehicles to be a side-business on such a platform?
  2. Will freelance drivers with specialty trucks – bulk, frozen, refrigerated, etc – join in?
  3. Who else could get to critical-mass volume and winning economics for all? Many venture-backed startups? FedEx and UPS? But, will they disrupt their own to-the-hub-and back-same-city-delivery model?
  4. If a LMDP platform could deliver breakthrough response times and costs, should this be on your radar screen?

LEGACY-CHANNEL PLAYERS BECOME BUSINESS-MODEL INNOVATORS

AMZ is forcing all legacy channel players to rethink their ways. Do you have the vision, analytics, and courage to change and win at Customer-Centric Cloud Commerce 2021?