<p class = "canvas-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) [pic] – sm" type = "text" content = "However, the most striking sign of the potential impact of Amazon Industry follows from the recent earnings report from XPO Logistics (NYSE: XPO) one of the world's largest providers of freight and logistics services and a leader in the delivery of heavy cargo on recent miles such as furniture and The culprit was "The influence of our largest customer significantly reduces our business portfolio," according to CEO Brad Jacobs. Jacobs continued. in explaining the profit appeal that XPO will lose $ 600 million in its annual business from this client, which shrank two-thirds of the business. & nbsp; & nbsp; "Data-reactid =" 12 "> However, the most striking sign of Amazon's potential impact on industry follows from the recent earnings report from XPO Logistics (NYSE: XPO) one of the largest global provider of freight and logistics services and a leader in delivering last mile of heavy goods such as furniture and technology. In its quarterly report XPO significantly reduced its leadership in 2019, and its shares fell to binary figures in the report. The culprit was "the influence of our largest customer, which significantly reduces its business portfolio," says CEO Brad Jacobs. Jacobs continued to explain that XPO will lose $ 600 million in annual business from this client, which reduces business by two-thirds.
Although Jacobs did not name the client, he was widely considered Amazon. Jacobs explained that the business that his company had lost was by sending mail, or by bringing large packets of trucks to mail. He also explained that other postal items have a low bar for travel and thus not as secure as a business that carries heavy goods delivery to the last mile.
<p class = "Canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "News also weighed on FedEx  (NYSE: FDX) and UPS (NYSE: UPS) declined respectively by 2.9% and 1.3%. Or FedEx and UPS sought to reduce the threat from Amazon, claiming that Amazon will need billions of dollars of investment to start competing However, as the XPO slideshow shows, it does not take much to torpedo stock prices. Data-reactid = "14"> News also weighed on FedEx  (NYSE: FDX) and UPS (NYSE: UPS) declined by 2.9% and 1.3% respectively. Both FedEx and UPS sought to reduce The threat from Amazon, saying that Amazon will need billions of dollars of investment to start competing with them. However, as XPO slide shows, it does not take much to torpedo stock prices.
Image Source: Amazon
<h2 class = "canvas-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = " Possibility of multibillion dollars " data-reactid = "27"> Possibility of multi-million dollar
According to the research of the market of transparency, it is expected that the global logistics market will reach $ 20.5 trillion by 2023 . Although Amazon does not seem to focus on the entire market, it is not surprising that the company is part of an industry that is both huge and directly affiliated with its e-commerce activity, since the distribution of shipping will essentially be vertical integration.
<p class = "canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "Latest article in [1 9459030] The Wall Street Journal & nbsp; (subscription required) indicates how Amazon is trying to undermine FedEx and UPS, avoiding negative fuel costs and other such payments. The e-commerce giant now uses its own logistics service to deliver about 26% of its orders, according to Wolfe Research, which shows that a significant logistics business has already been built, since the company controls about half of e-commerce sales. Amazon is the largest customer of the US Postal Service and is one of the largest for FedEx and UPS, and its initiatives threaten not only to pick up valuable customers from ship giants, but also exert pressure on industry prices, as Amazon has done in other sectors.For a distraction on Amazon, FedEx recently issued a statement saying that the e-commerce giant makes only 1.3% of its business. & Nbsp; & nbsp; "data-reactid =" 29 "> The recent article in The Wall Street Journal (subscription required) tells us how Amazon is trying to blow up FedEx and UPS, avoiding negative fuel costs and other similar payments, and now The e-commerce giant utilizes its own logistics service to deliver about 26% of its own orders, according to Wolfe Research, this suggests that it has already built a significant logistics business since the company controls about half of e-commerce sales in the US, either through its own retail transaction, and in the market The third party is the Client and is one of the largest for FedEx and UPS, and its initiatives threaten not only to pick up valuable customers from ship giants, but also to put pressure on industry prices, as Amazon has made a habit in other sectors. T o reject concerns with FedEx recently released a statement that the e-commerce giant is only 1.3% of its business.
What we like about our ability to engage in transportation, which many times we can do for the same costs or better, and we like it and its expense profile. We can also invest selectively, because we have better information. We know where our demands are, we know where we are moving things between warehouses and grade centers. And, not always engaging third parties, we discovered that we can expand our custom-made restrictions, and we have done so over the past few years.
Olsavsky refers to the huge amount of data that Amazon uses to inform its own delivery service. and adapt it to their own needs.
In many ways, the growing business of Amazon Shipping seems to be reminiscent of Amazon Web Services (AWS), a compact computer skyscraper that he originally developed as a home project to serve his own e-commerce needs, but now it's the largest business cloud business in the US by adopting. AWS posted operating profit of $ 7.3 billion in 2018.
While Amazon faced a tough competition in logistics, it could go the same way as with AWS as the company can take lessons and data from logistics and delivery services for itself and apply that knowledge to servicing its customers. Amazon has shown countless times that it is not afraid to challenge industry leaders even in areas where it has no previous experience.
XPO stocks ended on Friday 12.6%. This is most likely not the last time a logistics vendor blames his troubles on Amazon.
<p class = "canvas-canvas-text Mb (1.0em) Mb (0) -mt Mt (0.8em) -sm" type = "text" content = " More from the diverse fool "data-reactid =" 41 "> More from the stupid fool
<p class =" canvas-canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm Jeremy Bowman owns shares of Amazon and XPO Logistics, while Motley Fool shares shares and recommends Amazon and FedEx. , and Motley Fool recommends XPO Logistics. Disclosure Policy . "data-reactid =" 49 "> John McCoy, CEO of Whole Foods Market, Subsidiary aniyi Amazon, is a board member of The Motley Fool. Jeremy Bowman owns Amazon and XPO Logistics. Motley Fool owns stocks and recommends Amazon and FedEx. Motley Fool recommends XPO Logistics. Motley Fool has a disclosure policy.