Amazon Logistics And Trucking: Virtuous Cycles and The Flywheel Effect

Amazon is once again demonstrating that it is unstoppable. Check out the chart below, which tracks the crazy ascent of Amazon’s logistics business.

Its growth has led to deep conflict with other carriers, like FedEx, which decided to drop its relationship with Amazon earlier this month. Rakuten Intelligence, that captured the data behind the chart above, estimates that Amazon is now delivering as much as half of their own shipments. Erica Pandey spoke with Alex Pellas, a logistics expert at Rakuten, who said,

Amazon is about 40% of all e-commerce. If they’re handling half of their own shipments, that’s 20% of the whole market. That’s huge.

Amazon’s focus on speed of delivery has led to it being faster than competitors, which is attracting more companies to use Amazon’s logistics service. This is the ‘virtuous cycle’ of innovation, once again, the…