Amazon has added another piece of the logistics puzzle, quietly launching freight.amazon.com, a digital freight brokerage website in the US domestic market.
The move is yet another element of the supply chain that Amazon has moved into as it seeks to have more control over costs in this area.
The online freight service helps Amazon better manage its existing network of carriers and expedite the cargo matching process, which remains highly inefficient with most work still being handled over the phone or by fax.
While not providing capacity on its own vehicles as part of the platform, Amazon is brokering access to its trucking partners on its network.
The US freight brokerage market was worth an estimated USD 72 billion in 2017. The service competes with veteran brokers such as C.H. Robinson and XPO Logistics, as well as upstarts like Uber Freight.
Uber Freight – a similar freight brokerage service – officially launched in the US in 2017 and generated more than USD 125 million in revenue last quarter, according to recent statutory filings.
Analysts say Amazon’s move will likely pose a major shakeup for the US freight brokerage sector as the e-commerce giant has the resources at its disposal to offer pricing as much as 30 per cent lower than currently being offered. Shippers may also find an added incentive to join the platform if they are already doing business with Amazon’s core e-commerce division.
According to its website, Amazon is offering “beta service” access to 53-foot full truckload dry van freight in New York, New Jersey, Pennsylvania, Connecticut, and Maryland.” It also urges customers to “tap into the scale of Amazon as we extend our carrier network to give you best-in-class service at great rates.”