On May 4, Amazon introduced Amazon Supply Chain Services (ASCS), a service that opens its global logistics network to any company, not just sellers on its marketplace. With multimodal freight, storage, and distribution, Amazon directly competes with giants like UPS and FedEx, seeking to replicate AWS's success in the cloud.
Logistics infrastructure as a scalable service 🚚
ASCS is based on the capillarity of Amazon's network, with distribution centers, fleets of trucks and planes, and route optimization algorithms. The company compares the service to AWS, offering on-demand storage and shipping capacity. For businesses, this means outsourcing logistics to a platform that already processes millions of packages a day, with competitive rates and real-time tracking.
So who delivers the competition's packages now? 📦
The irony is that Amazon now offers its rivals the same logistics it used to crush them. While UPS and FedEx sweat bullets, small businesses will be able to ship products with the Amazon seal, even if the delivery person arrives in an unbranded van. Next up will be seeing Jeff Bezos renting his trucks to DHL. Capitalism, folks, is a box of surprises with prime.