As soon as I saw that Amazon was starting to expand its operation to include its own delivery vehicles I knew the company was in trouble. If a country with such huge volumes of freight can't even make money with FedEx and UPS competing for its business, what makes it think it can do that "last-mile" delivery process any more efficiently than those giants in the shipping business?
Nothing being in trouble about them getting into their own delivery business. They make plenty of profit, they just saw a way to keep more of it. The primary reason for their own delivery is that way when UPS or FedEx have strikes it doesn’t effect them. When you’re in the guaranteed delivery business things like the UPS air maintenance strike that’s being threatened can screw you up. It’s the same reason ESPN develops so much of their own programming, those sports strikes made their lives difficult. It’s bad enough being beholden to your own labor difficulties, but other companies’ labor woes messing with your business is something to be avoided.
Remember, Amazon IS profitable, they are VERY profitable. They just don’t sit on money. If you take out the cost of their 4 acquisitions a year you’ll see they make a ton of profit.
An excellent point, and one I hadn’t thought about.
Also, the public taste for entertainment is pretty low. People want free books, music, TV.
You win for the day! I could tell by your comment that you have a college business background. This is the first thing you learn in business school! Also that monopolies are not illegal if not abused. I see many defending break up do so with no knowledge of business or business law.
They chant break it up out of emotion with no understanding of the economics behind their screed