Right now, tech giants like Amazon and Uber are causing major problems within the logistics industry. This is not all that surprising, considering that the global logistics industry is worth around $8 trillion. That makes it one of the most attractive markets out there.
Amazon vs Uber: Tech Giants Disrupting Logistics
Amazon has a vested interest in what happens within the traditional trucking industry and other transportation, as they have millions and millions of products to move regularly.
Uber on the other hand is already a transportation company, looking to expand from their current taxi-driven business model into a logistics powerhouse.
Shipping companies are having trouble moving their products and having to pay more because of increased shipping prices mostly due to higher labor costs within trucking and rising fuel prices.
The logistics industry is expected to reach more than $12 trillion by 2022, which is made it a target for companies trying to enter prior to now. The difference is, they are actually in a position where they could take over a significant portion of the industry.
One of the reasons for this is new technology. Amazon has discussed delivering products by drone previously, and this may still be a viable delivery method in the coming decades. But it is also true that other technologies are being considered and more being created all the time that could make them a giant within logistics.
As for Uber, they have their own ideas and business models on how they can start getting products from distribution centers to homes and businesses using the existing network of Uber drivers. It is not inconceivable that in the future, the majority of Uber drivers will be driving packages and not passengers.
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