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I agree; as an outsider looking into the space it would seem to me that international freight would be far less to optimize than building a network to ship item
by BinaryIdiot 11y ago
I agree; as an outsider looking into the space it would seem to me that international freight would be far less to optimize than building a network to ship items out to individual homes. Granted still lots of optimization to be had but I'm not sure Amazon would automatically provide a better way to do it.
Most likely this is just more of them trying to own more of the vertical which probably translates into cost savings.
- Zombieball 11y agoI would assume what's interesting about companies like Amazon and Walmart is that by being more vertically integrated, they can use the cost savings from their retail businesses to subsidize developing and expanding new infrastructure. The same can't be said for companies like Fedex and UPS.