Will Amazon's Foray Into Delivery Change the Face of Trucking and Logistics?

In the latest trucking news, Amazon's foray really doesn't have much to do with trucking news at all. At least for the time being. But you may want to keep your ears perked up, especially you owner/operators out there, and those companies that have a regular package delivery service.

Here Comes Amazon

The Internet retail sales company, Amazon, has been playing around with the use of delivery drones that have the capability to deliver packages within a certain radius of their outlets. Obviously, drone range means that only the largest cities near an Amazon outlet would be eligible for this service. The logistics, drone types and drop zones still need to be worked out as of yet, but this free service is coming, and it will slowly bite into regular delivery services in big cities.

Global Delivery Next

Of course, drone delivery service is not practical for outlying areas, or on a global scale, and at this moment Amazon delivery comes in the form of the known reputable delivery services like FedEx, UPS and others. However, Amazon has a plan. They want to actually get involved in the delivery service themselves, and here's what they are planning to do.

Third Party

At first, Amazon wants to hire third party companies to exclusively do Amazon deliveries. Amazon has enough sales world wide that if a smaller third party company was enlisted as an exclusive Amazon delivery service, they'd reap big benefits.

Going Alone

But Amazon wants to, ultimately, go at it alone. By partnering first, they can learn the ins and outs of the delivery business, and then use that information to start Amazon Delivery, that will eventually challenge the big guns with better rates and better service.

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