Amazon.com has made a significant move diving into the third party activity of logistics
brokerage. The move has raised many eyebrows with the claim that their decision will massively
impact the freight industry and rather maybe permanently. The new hauling-site had been off the
radar until at the beginning of May when it was reported to have entered the market by Wall
Street Journal and other media centers.

According to Rena Lunak, amazon’s spokesperson, Amazon had been into the brokerage
services since 2016, and the freight site went active in the previous summer. Lunak claimed that
the media in their reports compared Amazon's rates to the rates of contractors; she argued that
the two were not comparable at all. She claimed that Amazon was only capitalizing on its vast
reach and network that has long been in existence to gain a place in the market share.

Business on-lookers were keen to conclude that the move by Amazon was intended to make
delivery more effective. And according to analysts, the venture into logistics will help Amazon
cut down on costs of shipment. Armstrong & Associates president, Evan Armstrong reiterated
that the investment would see to it that Amazon can strengthen their abilities through acquisition
of more trucking capacity. Jeremy Bowman claimed that it’s in the nature of Amazon to learn
new staff in the industry and execute them, so it’s nothing new since it is just a move to satisfy
their customers.

Amazon Freight came up with Amazon Web Services in 2002. The AWS is often compared with
Amazon Freight. AWS made $25.7 billion revenue earning a total of $7.3 billion net income at
the end of 2018, according to reports from Amazon's financial statements. AWS has also been a
great attraction for many other businesses, for instance, the Korean Air and Santander’s Openbank and therefore an analyst concluded that it’s not by surprise that Amazon decided to offer freight hauling.

Freightos CEO, Zvi Schreiber stated that Amazon has the tendency of creating internal tools and
later opening them up for use to the entire market as a service, for instance, the Amazon
warehouses. He added that the significant success factor for Amazon had been their expansion
from the market to the next, leading to dominance on the market. Schreiber claimed that Amazon
now has a significant competitive edge over other business and needed to be watched since it is
quite unfair grasping over 60% of America’s households. He argued that Amazon wants to be in
control of the entire supply chain.

Bowman reported that past experiences have helped Amazon know how well to handle their
business while at the same time seizing all opportunities that come by. With the announcement to
avail one-day delivery to their prime members, Amazon now has a task to analyze their logistics
even better.