Sign up for our free daily newsletter
Get the latest news and some fun stuff
in your inbox every day
For the first time ever Amazon is now its own largest delivery agent. Now employing over 648 000 people, the online retail behemoth is cutting out the middle man with 390 warehouses, 50 planes, 300 trucks and 20 000 delivery vans according to this article titled Amazon Logistics Has Arrived, Early.
What is even more incredible is that during the 2016 December holiday season Amazon only handled 8 percent of its shipments. That went to 20 percent in 2017, 30 percent in 2018 and now over 50 percent today.
This is why scale and first mover advantage are so important. Not many organisations can compete with Amazon because they will be more expensive and slower on delivery. Unless of course, they build those logistics networks. Not so easy. Especially when Amazon has a cash cow called Amazon Web Services, which prints them money to build such infrastructure. It is a great model with immaculate execution. We are happy shareholders and will continue to add.
