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OT - Amazon launches freight brokerage business

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  • OT - Amazon launches freight brokerage business

    I heard a couple years ago that Amazon was preparing to enter the freight brokerage business. It seems like an industry rife for disruption. I have found freight brokerage to be an awful and antiquated business, and dread the thought of calling around to get quotes. Calling around? Really? So I think this disruption will be great.

    It will probably be a while before it trickles down to the HSM folks, but it's coming.



    Amazon's digital freight brokerage platform goes live
    April 26, 2019 John Paul Hampstead

    https://www.freightwaves.com/news/br...form-goes-live

    Today, freight brokers and carriers worst nightmare has come true: Amazon has quietly taken its digital freight brokerage platform live at freight.amazon.com, and it is undercutting market prices from 26 to 33 percent.
    ..
    Notice how monetize comes after disintermediate. From a cursory review of four lanes in Amazon Freight’s current offering, it’s clear that Amazon is not trying to realize fat gross margins on its brokerage. Instead, it is massively undercutting market prices. Amazon’s new portal is intended for shippers who want Amazon’s rates for full truckload dry van freight in Connecticut, Maryland, New Jersey, New York, and Pennsylvania.
    ..
    As this table makes clear, Amazon quotes rates to shippers that are below even DAT’s broker-to-carrier spot rates. In other words, in its current form, Amazon Freight is a free, marginless brokerage.
    ..
    Monetization will come later, but this is the digital freight brokerage startup model on �Georgia overdrive’: massive capital deployed to rapidly scale a network on thin or negative margins and take share. There is no telling how big Amazon wants this business to grow, but at a certain point, prices will creep up as Amazon monetizes the brokerage service to fund further innovation.
    ..
    etc.
    Last edited by Glug; 04-27-2019, 06:03 PM.

  • #2
    Bad news... For everyone involved in shipping, he's going to drive peoples pay into the gutter

    Comment


    • #3
      I just checked the link and picked out these two gems of mangled English - jargon at its worst:

      'disintermediate' - cut out the middleman

      'sortation' - sorting

      Maybe this is an example of 'jargonisation' ? Why do people feel the need to do this nonsense?

      Ian.

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      • #4
        And, < Amazon Freight’s current offering, it’s > What are all those crazy looking letters doing in the text.
        ...lew...

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        • #5
          That's what a UTF-8 apostrophe looks like when someone uses MS windows CP-1252 to interpret it. Garbage in, garbage out.

          allan

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          • #6
            Originally posted by IanPendle View Post
            'disintermediate' - cut out the middleman
            'sortation' - sorting

            Why do people feel the need to do this nonsense?
            Please and Thank you for deconstraining the potentials of this modality of information sharing via your synergistic disambiguation and accentuation of heightened outcomes. I think that is how the truckers' executive mgmt speaks on the modern CB radio.

            Originally posted by Lew Hartswick View Post
            And, < Amazon Freight’s current offering, it’s > What are all those crazy looking letters doing in the text.
            ...lew...
            It is an encoding mismatch due to the cut and paste. Just squint and it will disambiguate.

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            • #7
              I overheard a quote that Amazon thinks anyone who doesn't shop with them should be considered 'irresponsible'.

              I avoid them when possible even if I pay slightly more. Amazon concentrates wealth and power to such a degree that the only option 'is not to play' with them.

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              • #8
                I'll always pay a higher price (within reason) to buy from Amazon for their customer service.

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                • #9
                  Originally posted by Abner View Post
                  Amazon concentrates wealth and power to such a degree that the only option 'is not to play' with them.
                  Anyone could have bought their stock for $10 a share in 2001 and 2002. And for those who did, the challege was not selling it at 100 or 200 or 800 or 1000...

                  Comment


                  • #10
                    Originally posted by Abner View Post
                    I overheard a quote that Amazon thinks anyone who doesn't shop with them should be considered 'irresponsible'.

                    I avoid them when possible even if I pay slightly more. Amazon concentrates wealth and power to such a degree that the only option 'is not to play' with them.
                    While it's true that Amazon has grown into a mega corporation,they have also helped a lot of small operations to grow.You do realise that there are many independent sellers on Amazon right?I have friends and family that have used Amazon to turn their local businesses into state wide and national operations.The people they have hired to help them,make much better wages than they would working for a big box store.

                    And Amazon's business model is no different than Sears&Roebuck from a hundred years ago.The only difference is the paper catalogs were replaced by computers.
                    I just need one more tool,just one!

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                    • #11
                      It is not in the best interests of the USA to allow Amazon to have any control over in shipping in the USA. It won't progress very far before the Gov. stops it the same way they stopped Bill Gates and made him divest in Intel. Too much control in one hand. A trucking strike will cripple the USA. I won't waste too much energy on the different scenarios and how they could play out. I predict Amazon/Brazos in any significant trucking stance won't happen.
                      How to become a millionaire: Start out with 10 million and take up machining as a hobby!

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                      • #12
                        Fastenal does the same thing on freight brokerage, correct?

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                        • #13
                          Originally posted by Black Forest View Post
                          I predict Amazon/Brazos in any significant trucking stance won't happen.
                          He's already there in warehousing and distribution.Also I don't think he's talking about getting into the actual trucking business,just the logistics side of it.

                          In any rate a lot of bets are being made that automated trucking will be a thing oneday.Although states and unions are already lining up to see to it that it never happens.
                          I just need one more tool,just one!

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                          • #14
                            This going 8 pages.

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                            • #15
                              Originally posted by Black Forest View Post
                              It is not in the best interests of the USA to allow Amazon to have any control over in shipping in the USA.
                              So it is better if the crappy, antiquated, obstructive, inefficient brokers continue to control the industry and constrain efficient businesses like Amazon? Amazon is just getting started in that industry - not a monopoly.

                              You probably saw that Amazon intends to make 1 day shipping the standard level of free shipping for Prime customers.

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