Uber is a Logistics Platform, Not A Car Service

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Uber is a Logistics Platform, Not A Car Service

Last week Uber announced that they would begin testing self-driving cars in Pittsburgh and that they had acquired Otto, a 90-person start-up that focuses on technology for self-driving trucks. Otto develops sensors and radars that can be quickly outfitted onto existing trucks. Otto’s goal (for now) is for the truck to be fully autonomous on the highways while the driver rests, and the driver takes over for exits and driving in cities. The technology is pretty compelling as...

 

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Can a Start-up save the World’s Largest Retailer

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Can a Start-up save the World’s Largest Retailer

Walmart acquired jet.com, an aggressive eCommerce player founded in 2014 to take on Amazon, for $3.3 bn. Walmart is a distant second to Amazon in online sales in the US - $14 billion compared to $63 billion for Amazon. More troubling, however, has been Walmart's declining year over year eCommerce sales growth. With eCommerce, Walmart has adapted an Omni-channel fulfillment strategy which makes sense on paper - 90% of Americans live within 15 miles of a Walmart store so the stores can serve as eCommerce fulfillment centers for the last mile delivery...

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Amazon, Kiva Robots, and the Widening Moat

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Amazon, Kiva Robots, and the Widening Moat

ravel time by warehouse pickers typically accounts for 50-60% of the total order fulfillment costs and considering that Amazon ships upwards of 5 billion items per year , optimizing the order fulfillment process has an enormous impact on Amazon’s bottom line. In 2012, Amazon acquired Kiva for $775 million and rolled out robots in their distribution centers in 2014...

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Sprouts Farmers Market Partners with Amazon→

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Evan Hoopfer, writing for the Dallas Business Journal:

“Amazon is expanding its produce delivery services in Dallas...The service is part of Amazon’s “Prime Now,” which delivers goods in hours.”

What do you do when faced with a vastly stronger competitor? You team up. This seems like a no-brainer especially for small to mid-size retailers. The breadth and depth of knowledge required to master e-commerce is staggering and not many retailers have the resources, technology, or logistics infrastructure to compete.