This Could Be Big for AMZN Stock
Jeff Bezos has a new game plan for Amazon.com, Inc. (NASDAQ:AMZN) that will send the bears running for cover. Holders of AMZN stock should take note.
Before I reveal Bezos’ latest initiative, allow me to remind you of Amazon’s biggest project that’s currently underway…
Bezos has made huge plans to claim the land, sky, and sea for Amazon. He is working on launching a full-blown delivery and logistics service for Amazon’s e-commerce business that will cover all forms of transportation—you name it!
If you haven’t been following, Bezos has been quietly buying fleets of trucks, leasing jets, renting space on cargo ships, and building delivery drones to create the greatest logistics service owned by any e-commerce company in the world. (Read: “AMZNStock: Amazon.com’s Next Move Could Be Bigger Than the iPhone.”)
This visionary CEO’s latest project is even more interesting.
Bezos is now working on launching an Uber-like service called “Amazon Flex.” Amazon is already inviting private drivers to become a part of this new delivery service.
A quick visit to Amazon Flex’s official web site will give you an idea of what this service is about. This is what the web site says: “Make $18.00 to $25.00 per hour delivering packages for Amazon with your car and smartphone. Be your own boss: make great money, delivering when you want.”
Reuters is reporting that some drivers have already received an invitation from Amazon to become a part of Amazon Flex’s delivery network. (Source: “Exclusive: Amazon expanding deliveries by its ‘on-demand’ drivers,” Reuters, February 18, 2016.)
The service will work very much like the on-demand taxi-hailing services Uber and Lyft. Drivers will use Amazon’s smartphone app to sign up for deliveries in their area. These registered drivers will then pick up packages from Amazon’s warehouse and deliver them to customers.
In turn, the drivers will be paid an hourly rate for their service. So technically, they won’t be Amazon’s employees, just like an Uber or Lyft driver. The only difference is that Amazon Flex drivers will be delivering parcels instead of transporting passengers.
The move is ingenious!
If Amazon Flex turns out to be a successful venture, the e-commerce giant will not only be able to cut down on delivery costs by a huge margin, but it will also be able to offer swifter deliveries.
Currently, Amazon has to pay high delivery costs for faster delivery services like UPS and FedEx or settle with slower deliveries from cheaper alternatives like the United States Postal Service (USPS).
According to Reuters, Amazon Flex is now available in 14 cities across the U.S., including Seattle, Las Vegas, and Dallas.
Amazon’s delivery service, when perfected, will be the biggest of its kind in the world. The company is taking all the right steps. This new project is yet another feather in Amazon’s cap.
The Bottom Line on AMZN Stock
I’ve long been bullish on AMZN stock, through its highs and its lows. More than the company, I’ve been bullish on its leader. The daredevil CEO has taken the company from a small online bookstore to a gigantic technology conglomerate by undertaking some very risky ventures. History is on his side, though, and I believe the future will be, too.
This new delivery initiative from Amazon.com, Inc. is a game-changer. Holders of AMZN stock are in for a joy ride.