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> Shipping is the definition of a commoditized business. Unlike AWS, for example, they will not be pioneering a new business model or technology. I'm guessing
by SEMW 10y ago
> Shipping is the definition of a commoditized business. Unlike AWS, for example, they will not be pioneering a new business model or technology.
I'm guessing it's the one-hour-delivery thing - last year they started testing one hour delivery for popular products in a couple of pilot cities.[0]
Presumably they can't do one hour delivery with a traditional model of centralised-warehouse -> shipping company -> shipping company's regional hub -> customer; they need an Amazon warehouse near that city, with products dispatched from there to the customer directly, or it takes too much time. Building a warehouse and dispatch operation near every major city won't be cheap.
[0] http://www.bbc.co.uk/newsbeat/article/33332018/amazon-launches-one-hour-delivery-service-prime-now-in-parts-of-london http://www.bbc.co.uk/newsbeat/article/33332018/amazon-launch...
- eric_h 10y agoThere are two components to Prime Now, at least in NYC. One is products that seem to be sold from an Amazon controlled or contracted warehouse, and the other are products sold by local businesses (e.g. produce from Westside Market).
- hkmurakami 10y agoRelated, I don't think certain niches of shipping are truly commoditized. Have some high impact document that needs to be shipped somewhere within 24 hours and be guaranteed to get there safely? I can't imagine trusting anyone but FedEx for that.