AMAZON

Because they would rather be in the business of leasing tractors than running a trucking company.

 

Ironic. I am at one of their facilities right now. Big sign said no photography, guess what I went ahead and did anyway.

 

Ok, so why is Amazon getting daycabs now? For local routes between fulfilment center and shipper? I am trying to figure out how they justify their bottom line? Is it to undercut traditional LTL/TL to move their own stuff around? And weren't they the reason why NEMF went under? NEMF couldn't keep up with the dwindling rate?

 

The article I read from Business Insider goes back to Oct 2019, alot of it was still speculation, but what is known is that Kenworth and Volvo are building the trucks, Kenworth didn't offer any comment and Volvo only said that yes Amazon is one of their customers, in addition to all this the article said that Amazon has placed a order for a 100,000 electric delivery vans, it was also stated that one of XPOs largest customers is pulling away from them, experts said it is most likely Amazon, these day cabs have been spotted all over apparently, at Amazon facilities and at dealerships waiting for pickup, all I know is the trucks I saw in Phoenix look pretty much like LTL linehaul spec, and there were two and three axle trucks, alot of truck for just local work in my opinion, waiting to see if Amazon pup trailers and dollies start popping up.

 

For the same reason that RPS (now Fed Ex Ground) did years ago, they utilize a entire contractor base in their business model, all package delivery vans, local tractor p&d and linehaul is operated by contractors and employees of the contractors.

 

I’ve done a lot of loads into amazon from outside shippers, I got to know some of the drivers, they told me something different. They told me these tractors are for amazon drivers for local deliveries within 50 miles.

I also want to point out I have never see. An amazon tractor trailer with any labels on the side saying “operated by” they all had amazon dot numbers.


Both could be true but that’s what I have been told.

 

Amazon is basically copying the same business model as FedEx and to a degree...the Post Office. They're trying to cut everybody out so they control every aspect of their logistics. They got their own cargo planes...just like FedEx. They got their delivery couriers, which they contract out...just like FedEx with Ground. And they got their own trucking which they also contract out...just like FedEx with Ground. I think it makes sense for them to have their own private fleet for local deliveries, just like Costco and the PO does...using contractors for long distance truckload and company drivers for local shuttles/linehaul and perhaps even as P&D drivers. They've already just about caught up with FedEx as far as package deliveries...and expected to go beyond them within this year. It's probably the reason why FedEx Express and Ground are joining forces to make deliveries more efficient. They also started going beyond their own logistics and branching off as another logistics competitor...and expected to go beyond even UPS by 2022 as the largest parcel delivery service out their. Will this ever happen? Who knows...but it's scary to think what type of impact this will have in the trucking industry and how many more companies will fold because of their ever expanding logistics.

 

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I don't doubt that, and the employees are most likely correct, and that may be the plan for now, but those tractors have LTL linehaul specs written all over them, the models, wheel bases, the full fairing packages and most likely they have anything ranging from a 12L to a 15L motor in them, I think there is a long term goal here, they are setting up their own linehaul is my guess.

 

They will surpass ups and fedex for sure, Vegas alone has 8 or 9 distribution centers that I have seen, Phoenix and Tucson has around the same and California is more then then the other 2 combined.

With their same day delivery process I think their goal is to build multiple locations in every city. This will give them a bigger advantage then fedex and ups, and with no unionization they will surpass usps and fedex and ups combined in the next 5-10 years. All of this is also closed loop operations, and on top of that to further expand they have no choice but to get into other areas of freight.

min other words expand or die.