A "Nightmare Come True": Amazon Launches Freight Brokerage, Slashes Prices By 30%
https://www.zerohedge.com/news/2019...-launches-freight-brokerage-slashes-prices-30
In what is being called a "
nightmare come true" for freight brokers and carriers, Amazon did what it traditionally does every time it enters a new market, and took its own
digital freight brokerage platform live while undercutting prevailing market prices by 26% to 33% in the latest deflationary race to the pricing bottom in order to grab market share, according to
FreightWaves.
The company is trying to not allow trucking capacity to constrain its growth and, for now, it is coming in at price points that are far below market prices. This indicates that Amazon is not trying to realize enormous gross margins at first. The company's new portal is intended for those who want Amazon‘s rates for full truckload dry van freight in Connecticut, Maryland, New Jersey, New York, and Pennsylvania. Based on these rates, the company is essentially a "free, marginless brokerage".