Amazon’s mark on the logistics industry is hard to ignore, and it may be hard to believe that they haven’t been around long enough for their influence to really take hold. But according to Jakim Pearson at Focus South Logistics, Amazon will continue to grow as a force in the industry, especially with its truck fleet.
Speaking about Amazon’s logistics industry influence, Pearson said, “My view is that Amazon’s impact has yet to be fully realized. So many people focus on Prime or even FBA (Fulfillment by Amazon), but I think the real game-changer was their purchase of Whole Foods.”
He continued, “The grocery business, in general, has been consolidating for many years, and Whole Foods was one of the last major, national grocery chains that had not yet been acquired. So by buying Whole Foods, Amazon instantly became a force to be reckoned with in food retail.”
When asked if he thought there were any other changes on the horizon for Amazon’s logistics industry footprint, Pearson shared his thoughts about their need for drivers. “There is no doubt that Amazon will need more drivers,” he said. “Whether they continue to grow their fleet or partner with UPS and FedEx in some capacity remains to be seen, but it’s a safe bet that we will see continued demand for truck drivers.”
Pearson also shared his thoughts on the use of technology within the logistics industry and how Amazon has helped spur this growth. “I think we will continue to see technology leapfrog in the industry,” he said. “The sharing economy is such a big part of that. It’s almost impossible for me to remember my life without Uber or Lyft, and many professional drivers are using various on-demand apps like these to supplement income.”
When asked whether or not he thought Amazon would continue innovating in their logistics industry, Pearson shared his thoughts. “I don’t see any reason why they wouldn’t,” he said. “The best companies are constantly trying to improve their products and processes. They’ve already revolutionized the book business and everything from food to fashion while also creating a huge logistics industry footprint. I suspect they will continue to grow.”
“I think the industry, in general, has a great opportunity to continue growing,” Pearson said. “I’ve seen companies doing things today that I could have never envisioned years ago.”
“We are at an interesting crossroads where many of the old traditional logistics players are either not willing or able to step up their game quickly enough to take advantage of these opportunities. However, many new companies are coming to the table with solutions that are helping their customers thrive in this new environment. That’s ultimately good for the buyer, the sellers, and especially the drivers.”
“I think that rapid growth will be one of the hallmarks of this new era,” said Pearson. “The new business models are designed to rapidly scale, both for suppliers as well as buyers, so it’s just a matter of time before we start seeing dominant players emerge in almost every sector.”
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