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Amazon expands its world domination plans to the suburbs

Snacks / Thursday, September 17, 2020

Claaassic Amazon... Amazon couldn’t fulfill its two-day delivery pledge earlier this year during the pandemic shipping surge. Its solution: take over the suburbs. The Zon has already hired 175K new workers during the pandemic. Now it's reportedly planning to open 1.5K small delivery hubs in cities and suburbs across the US.

  • The Present: Amazon packages leave from warehouses in rural, non-city/suburb areas.
  • The Future: Amazon warehouses are next to your local coffee shop, your grocery store, and inside your mall.

Out of the many things that Amazon is aggro about... it's most aggressive with delivery times. Amazon will deliver ~70% of its own packages this year from its own warehouses (sorry UPS). Being closer to you means being able to deliver faster. That's more important than ever for Amazon:

  • Walmart and Target are leveraging their thousands of stores as distribution centers for same-day delivery. Their constant proximity to you is their biggest strength over Amazon.
  • Walmart just launched its $98/year Prime competitor, aka Walmart+ — it includes free same-day delivery.

This is the next phase of Amazon's domination... Besides Whole Foods, some delivery vans, and annoying Alexa, you don't really see Amazon in your non-digital life. Instead of empty department stores in malls, we could be seeing Amazon warehouses soon. Amazon's digital empire will take a clearly visible form in our day-to-day lives.

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