Will the Marketplace Kill the Delivery Industry?
- Admin
- Jun 25, 2019
- 2 min read
The E-commerce industry has been a successful source of growth for UPS, FedEx, and DHL among other delivery service. However, taking the example of Amazon's which ambition has been in plain sight for years and also its growth. The company has built its own network of warehouses and package sorting centers. It has leased airplanes and truck trailers to transport cargo. It registered to move freight across oceans, is testing drones in some cities, Uber drivers to deliver at certain hours, and in dozens of cities it tapped couriers to deliver packages directly to shoppers' doors., Amazon has been building itself into a package delivery company to satisfy not only the demands of shoppers but also anyone else who wanted to move merchandise from one place to another.
There are many companies that have been challenged lately due to new players from different industries. Technology or new business models have been impacting and their capacity to react and some of them even had to disappear. For example, Toys r Us that e-commerce in general took them down; another example are the camera industry, smartphones have made them become so small to become attractive only to a niche of professionals. In fact, these trends are being seen in many industries, Fintech against banks, taxis services, hotels, etc; Therefore, the main question relays on how soon might come to the delivery industry?
Would the delivery industry be able to evolve to compete with the new players are coming up? That question is something to take into consideration. Now UPS, FedEx and DHL to take a few of the examples as the biggest delivery companies; will no longer compete against themselves: Now they have a new kid on the block "Amazon", to start taking into consideration as a key competitor. Now, Amazon has to build an enormous infrastructure for delivery, which could potentially have some free spaces or free capacity in certain periods based on demand. They could deliver for other companies at almost no cost for them. They are already testing next day delivery in many products and some of even same day. Therefore, what is there to stop them?
The marketplace industry will have to step up to compete against Amazon. The main competitors currently are Walmart, eBay, Mercado Libre, to mention some of the players, These companies will require to test faster delivery services or create their own potentially or maybe consolidate themselves and create one that delivery company that competes better. As a matter of fact, there is a big opportunity there for the delivery industry to take control and create new services for the rest of the marketplace companies to dominate that and become a key player to Amazon. Otherwise, the delivery industry might become obsolete or their capacity to evolve will become so slow that we might be seeing the disappearance of icon companies in the delivery industry.
Comments