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AP / Ross Franklin
- Amazon on Friday launched a trial version of its online freight brokerage platform and reduced by a third the prices on the market, according to FreightWaves.
- The e-commerce giant has decided to go from being an intermediary and playing the role of intermediary between shippers and truckers, giving it more control over its access to capacity trucking and the price paid.
- It competes with companies such as C.H. Robinson and Uber Freight.
- "Amazon Freight is a free, no-margin brokerage service," FreightWaves said.
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A few days after raising the bar of retailers from a two-day expedition to a day for Prime members, Amazon is trying to disrupt another sector. The e-commerce giant on Friday launched a trial version of its online freight brokerage platform, cutting market prices by more than a quarter, according to FreightWaves.
Amazon, which posted higher profits in the first quarter last week, is relying on a nationwide network of highway carriers to haul huge quantities of products across the Americas. He decided to remove middlemen and play the role of intermediary between shippers and truckers. As a result, it should be able to better control its access to trucking capacity and the price it pays.
Initially, Amazon offers access to a cargo of 53-foot dry vans in New York, New Jersey, Pennsylvania, Connecticut and Maryland, according to FreightWaves. It charges about $ 709 for freight transportation from Albany, New York, Washington, DC – a little over 33% off the carrier's $ 1,066 cash freight rate , according to FreightWaves, who termed the brokerage service ".
Amazon is sticking to its proven market-dominating recipe: reducing the market share of its competitors and accumulating losses, then raising prices and making a profit once it regains power and competition, and is gaining ground.
"Take advantage of the breadth of Amazon as we expand our network of operators to offer you the best service at a great price," reads on the website of the platform.
The service competes with veteran brokers such as CH Robinson, as well as companies such as Uber Freight, "a transparent, on-demand market that seamlessly connects shippers and carriers," generating a high level of revenue. business of $ 125 million in the fourth quarter of 2018, according to the recent filing of the first buyback group.
The latest Amazon company may not be as catchy as its latest Alexa smart speaker or the original Prime Video series, but it gives the company more control over its D & D chain. Supply and another advantage over its competitors.
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