Amazon releases digital freight brokerage platform
The e-commerce giant, Amazon, has released a digital freight brokerage following the announcement of Prime free shipping set to be reduced from two days to one, according to FreightWaves.
FreightWaves believes that Amazon has quietly unveiled its freight platform at freight.amazon.com and has begun to undercut market prices from 26% to 33%.
Pricing offered on Amazon’s platform is around 30% below market rate. The site reads “tap into the scale of Amazon as we extend our carrier network to give you best-in-class service at great rates.”
With Amazon quietly developing its logistics portfolio with vans, trucks and aircraft, it is expected that the launch of the freight brokerage platform will see Amazon change their practice and increase capacity above its immediate need.
Analyst Brian Nowak wrote: “We see AMZN’s 1-day Prime shipping raising consumer expectations and increasing the cost to compete in e-commerce. Over the long term, we also see this as a Trojan horse for Amazon to grow its next disruptive business… a third party logistics network.”