business news in context, analysis with attitude

While Amazon’s decision to invest $800 million in improving its Amazon Prime shipping guarantee from two-days to one-day was seen as a challenge to its competition, Bloomberg writes that it is “good news for logistics startups helping Walmart Inc., Best Buy Co., Macy’s Inc. and other retailers compete online. These upstarts, often led by Amazon alumni, say their phones are ringing with new inquiries and that venture capitalists are keen to pony up.”

Some examples: “Seattle startup Flexe, which operates a marketplace for warehouse space and online order fulfillment, on Tuesday announced a $43 million investment led by New York firm Tiger Global. Dolly, another Seattle startup, recently announced $7.5 million in fresh funding to expand to new cities and start delivering televisions, sofas, appliances and other big items for the likes of Lowe’s Cos. and Costco Wholesale Corp.”

The story points out that “the interest will only keep heating up as the busy holiday season approaches and retailers look for ways to keep Amazon from gobbling up more sales. Last-minute shoppers are one of the last places retailers have an edge over Amazon, and next-day delivery blunts that advantage.”
KC's View:
One logistics guy tells Bloomberg something that I’ve heard other such folks say - that “Jeff Bezos is absolutely our best salesman … He comes out with something and our phones light up.”

No kidding.

I think we are in a moment when everybody is - or should be - looking for an angle and a partner … the goal has to be to create alliances that are 1+1+3 … or 4 or 5 or 6.