Amazon now a Freight Brokerage, Slashing rates 30% below market nationally.
Discussion in 'Freight Broker Forum' started by x1Heavy, Apr 28, 2019.
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Space colonies, here we come!
Jeff Bezos Is a Post-Earth CapitalistMidwest Trucker Thanks this. -
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I see it as a much bigger threat to brokers than I do carriers. If a shipper is currently paying $1000 to a broker for a load who in turn gives it to a carrier at $700, Amazon is telling those shippers to go through them and cut out that 30%.
In the long run that lowers the rates amazon pays to move freight by cutting out the margins of brokers. It’s not a near sighted play. -
#### (poop) always rolls down hill. Anyone that thinks this 30% cut doesn't pass through to carriers fairly quickly and easy in a market way oversaturated with trucks is crazy.
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It's funny because so many people seem concerned that autonomous trucks are going to Wipeout drivers and owner-operators.
No offense to the brokers on the site, but the future is Uber and Convoy and Amazon automated platforms that cut the broker out.
Now Amazon itself can go buy a Bazillion trailers and have everything preloaded, I thought I read somewhere that was their plan. A lot of trucking companies will work for Less if they're 99% sure they can just drop and hook.
But even though they will have a giant network of carriers in place, having other shippers come in and use them as the broker, they still have to come in at some kind of a rate that the trucks will haul for.
I suppose some guys will be happy to work for nothing, those guys seem to be plentiful. But unless Amazon becomes the absolute number one largest most powerful highest volume Brokerage in the world, I don't see how the free market is going to completely be controlled by then. For their own freight, yes. For others' freight, I don't know about that.
I'm sure someone can explain some of this to me better than I understand it, but that's the way I see it.Midwest Trucker Thanks this. -
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LOLOLOL I don't know if it has been mentioned here but now they are trying to get people to quit and start delivery companies! Hell no!! Because they KNOW owning and maintaining delivery equipment and drivers is brutal! Why don't they just employ delivery drivers!? LOL. We all know the answer.
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