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I'm sure the holiday and other demand spikes are also extremely expensive. By handling the steady-state deliveries, Amazon is again draining away all the profit

by zellyn 6y ago

I'm sure the holiday and other demand spikes are also extremely expensive. By handling the steady-state deliveries, Amazon is again draining away all the profitable, predictable deliveries, and outsourcing the expensive spikes. It's … brilliant?

ogre_codes 6y ago
> It's … brilliant? Assuming it's a steady state then it's certainly good for Amazon. Particularly since their competition doesn't have the scale to reduce costs similarly.
notatoad 6y ago
like so much the big tech companies seem to do, it's brilliant but unsustainable. it's brilliant right up until the point where it kills the partner that they're abusing and there's nobody left to handle their spikes.
- petra 6y ago
  Let's say Amazon kills Fedex, UPS and USPS. That's great! Now Amazon has monopoly/duopoly on logistics.
- generj 6y ago
  Or right up until FedEx and UPS agree on burner phones Dec 1 that they aren’t taking more than a pittance of the holiday spike traffic, leaving Amazon in the lurch.