Executive Briefings

Can 'Amazon Transportation and Logistics' Begin to Compete in 3PL World?

Much as it has with cloud computing, Amazon is poised to move in a big way into third-party transportation and logistics services, leveraging its vast network of fulfillment and distribution centers as well as its massive data and cloud assets, according to an equity analyst and media reports.

Colin Sebastian, an ecommerce analyst for Robert W. Baird, predicts in a research note that Amazon will find the lure of an incremental opportunity in the estimated $400bn-$450bn transportation and logistics sector too good to pass up, even dubbing it "Amazon Transportation and Logistics."

"We note there is currently $170bn in market capitalization in legacy (logistics and transportation) companies that may be ripe for disruption," Sebastian said in his note. "Just as Amazon Web Services (AWS) contributes an incremental $50bn in Amazon value, we believe logistics could ultimately add billions more." He also notes Amazon's ever-growing network of fulfillment and sortation centers – 167 globally, with 92 in the U.S.

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Colin Sebastian, an ecommerce analyst for Robert W. Baird, predicts in a research note that Amazon will find the lure of an incremental opportunity in the estimated $400bn-$450bn transportation and logistics sector too good to pass up, even dubbing it "Amazon Transportation and Logistics."

"We note there is currently $170bn in market capitalization in legacy (logistics and transportation) companies that may be ripe for disruption," Sebastian said in his note. "Just as Amazon Web Services (AWS) contributes an incremental $50bn in Amazon value, we believe logistics could ultimately add billions more." He also notes Amazon's ever-growing network of fulfillment and sortation centers – 167 globally, with 92 in the U.S.

Read Full Article