Amazon Plans Big Push to Take on FedEx and UPS
Depending on where you call home, you may have noticed lately that more and more items ordered from Amazon.com are being delivered by fleets of white trucks with the Amazon logo emblazoned on their sides. In a move signaling a bigger push into the shipping industry, Amazon is expected to acquire French shipping company Colis Privé, as part of a plan to go head to head with FedEx, UPS and DHL according to The Seattle Times.
Amazon’s acquisition of Colis Privé is part of a bigger move by Amazon to rely less on multinational shipping companies to ship their products. The potential benefit of owning the shipping network could potentially have a substantial impact for Amazon’s bottom line when taking in account rising shipping costs. In 2014, the company spent over $8.7 billion on shipping, up from $6.6 billion in 2013. It seems likely that after managing the logistics of its core revenue-generating, Amazon could then extend their logistics capabilities as a service to other organizations.
This move would not surprise many, as Amazon is no stranger to disrupting industries. What started as the computing infrastructure that powered the company’s website (the largest retailer in the world) became the building blocks to what would transform into the biggest business in cloud computing by far. Amazon has transformed the way organizations utilize computing power by allowing clients to purchase computing power on an hourly basis which is ideal for projects whose capacity needs fluctuate at certain times.
With the pending acquisition of Colis Privé, Amazon appears ready to disrupt another industry.
Growth through acquisition, is often mistakenly considered the exclusive domain of the largest companies. However small and midsize company looking to achieve substantial growth can benefit just as well. For more information about how Talley & Company can help you plan, negotiate, structure and execute on your growth strategy, contact us today.