Amazon needs no introduction when it comes to e-commerce. To be honest, the company is one redefining the e-commerce market almost every quarter of the year. The ability of the company to understand the market right before the boom is arguably the reason why it is one of the highest valued companies in the world. That being said, the company is always looking to expand.
That being said, Amazon, recently is trying to gulp the entire freight business in the US. However, it will be extremely hard for as it has a lot of competition. To enter a market is one thing and to create space for yourself is another, the freight business of Amazon is a novice and the fact that it was trying to create space by splashing prices has not gone down well with the rivals. Talking about rivals there are a large number of rivals and the competition is fierce.
The nascent freight business might take a hit and because of that and to separate Amazon from other companies, the American giant decided to splash by a third. The Freight Waves also reported that the services were launched in the northeastern states last summer and because the prices were low, it became quite popular amongst those parts.
Amazon, which has all means of shipping has never felt low of themselves while forcing out the companies that rival them. That being said, Amazon said that the undercutting of the prices is not true and people reporting the same are misinterpreting the data. There was a statement released about the same as well.
“The analysis suggesting dramatic undercutting of pricing is false,” the statement read.
However, analysts feel that Amazon might not be able to lure all the businesses as the big players won’t shy away from competitors, even if the competition is from a company like Amazon. “Not all customers will be looking to turn over their confidential supply chain data to Amazon, particularly larger players in the retail and consumer products businesses,” Cowen & Co analyst Jason Seidl said in a note.
There was a major disruption in the prices as well when the convoy’s prices went up by 5% to 15%. Amazon, in such conditions, lessened their price as the company has deep pockets and then there was a problem as the move didn’t go down well with any of the analysts as well.