Amazon.com, Inc. (NASDAQ:AMZN) has heavily invested on its same day delivery services, physical store business and fulfillment centers to gain a new customer base. Amazon.com, Inc. (NASDAQ:AMZN) is tapping into the worlds of business outside e-commerce. But as the e-commerce giant started making a move in the delivery service, other famous companies seem to be pouncing on the potential opportunities. An article on Fool mentioned companies like Uber and Sidecar, which have announced that they are planning to launch delivery services apart from riding. This would mean that people can send and receive deliveries in different using these services.
The source said that Amazon will be in deep trouble if Uber, Sidecar, Lyft and services like these start delivery services. Amazon.com, Inc. (NASDAQ:AMZN) has recently got a shock when FAA rejected its requests for delivery programs through drones. The only option left for Amazon.com, Inc. (NASDAQ:AMZN) is to start massive same day delivery services across the US but this would drain billions form the company. On the other hand, Amazon customers are not happy with its high rates.
Uber and other services have announced that their charges for delivery program will be 80% less than the traditional delivery programs like Amazon. This would create a whole new market competition and Amazon.com, Inc. (NASDAQ:AMZN) could expect heavy losses.
The source said that Amazon.com, Inc. (NASDAQ:AMZN) has no infrastructure for fast deliveries whereas Uber and Sidecar has thousands of drivers who would be happy to drive some more dollars through simple deliveries at places they daily go.
Ken Fisher’s Fisher Asset Management owns over 2.4 million shares in Amazon.com, Inc. (NASDAQ:AMZN).