Since the coronavirus outbreak, Uber’s business slumped between 60 and 70 percent. After saying in February that it expected to generate between $16 billion and $17 billion this year, the company now says it cannot forecast its revenue. D.A. Davidson senior research analyst Tom White said that, with regard to ride-sharing, “the whole country is going to be down 70 to 80 percent.” The coronavirus has also highlighted a crucial labor issue: whether ride-share drivers are considered employees or independent contractors. Continue reading Ride-Sharing Slumps, Leaving Uber and Lyft Drivers in Limbo

After prioritizing essential products, such as cleaning and healthcare items, Amazon is again allowing third-party sellers to ship non-essential products. Its refusal to accept shipments of such products frustrated its third-party sellers that form 58 percent of Amazon’s overall sales. Amazon, which will limit quantities of non-essential products, is hiring 75,000 more employees to keep up with demand. The company also asked new Amazon Fresh and Whole Foods Market delivery/pickup customers to join a waitlist. Continue reading Amazon Scales Up to Address Demand During the Pandemic

Amazon, Alphabet’s Wing and Uber Technologies are conducting government-approved trials of drones to deliver packages. Wing is in Christiansburg, Virginia and Uber will begin tests in San Diego before the end of 2019. United Parcel Service also gained FAA approval to create a fleet of drones to deliver health supplies and, ultimately, consumer packages. The FAA predicts that drones for commercial purposes will reach 2.7 million by 2020. Meanwhile, the Department of the Interior is grounding more than 800 drones that were manufactured in China, citing national security concerns. Continue reading Drones in Delivery Tests, U.S. Agency Bars Chinese UAVs

FedEx will not renew its contract, which expires end of August, for ground delivery of packages for Amazon. In June, FedEx ceased shipping Amazon packages by air but continued ground delivery. FedEx is cementing its relationships with Target, Walmart and other big e-tailers that compete with Amazon. The company released a statement that its move is “consistent with our strategy to focus on the broader e-commerce market,” and its chief operating officer Rajesh Subramaniam said FedEx is “all-in on e-commerce.” Continue reading FedEx Ends Delivery for Amazon, Supports Other E-Tailers

Walmart launched Delivery Unlimited, which offers consumers a subscription grocery delivery service for $98 per year or $12.95 per month, with a 15-day trial period. Per-order fees run $9.95 or less. The new subscription service is priced competitively, with Shipt and Instacart charging $99 per year. Prime Now costs $119 per year, but touts all of the benefits of Amazon Prime, including fast shipping and streaming media content. Target, which bought Shipt, now offers shoppers same-day delivery and a first-time $9.99 per order fee.

Continue reading Amazon, Target, Walmart Ramp Up Their Delivery Services

Uber demonstrated the transport of a McDonald’s meal via its Uber Elevate A4200 drone with custom-designed delivery box. The drone was set to fly only half a mile away, but the trip was canceled due to a 26-knot breeze. The demo is still noteworthy as a practical application of the technology. Uber isn’t the only company pinning some of its high-tech hopes on drone delivery. Google already has the greenlight from the Federal Aviation Administration (FAA) to make similar unmanned commercial deliveries in Virginia, and Amazon also debuted its drone delivery service. Continue reading Uber Demonstrates Its Drone Delivery Service in San Diego

Last month, Amazon earmarked $800 million to guarantee one-day delivery for its Prime members. That’s another blow for U.S. department stores struggling to find ways to retain their customers against the Amazon onslaught. One important way they’ve done this is to focus on loyalty programs. According to market intelligence company Beroe, the U.S. loyalty program sector was worth between $27 billion and $55 billion in 2018 and is expected to continue to grow by 2 percent to 4 percent between then and 2020. Continue reading Retailers Push Loyalty Programs to Compete with Amazon

Competing for delivery drivers in what The Wall Street Journal calls the tightest U.S. labor market in 50 years, Amazon is willing to pay its current employees to quit their jobs to start local package-delivery businesses in order to help the e-commerce giant with its ambitious delivery goals. In an increasingly competitive market, Amazon is looking to move away from depending on the U.S. Postal Service and other companies to make deliveries happen. Instead, Amazon announced plans to invite entrepreneurs of its own making into the mix.

Continue reading Amazon Will Pay Employees to Quit, Start New Companies

This week, Walmart announced that it will start offering free, next-day delivery on select online orders over $35 without any added membership fee. This announcement comes after a similar one from rival retailer Amazon just last month. Amazon, the lucrative e-commerce giant, announced that it is investing $800 million in its warehouses and delivery infrastructure with the goal of cutting the speed of its Prime deliveries from two days to just one. For now, Walmart’s quicker deliveries will only be available in select markets.

Continue reading Walmart Offers Next-Day Delivery to Compete with Amazon

Last month, Amazon made a pledge to spend $800 million in efforts to make next-day delivery the new standard. In turn, this put increased pressure on brick-and-mortar rivals like Walmart, Best Buy, Macy’s and many others who are rushing to keep up. And it could mean big deals for the logistics companies that work with those physical retailers. As just one example, the Seattle warehouse space and online order fulfillment startup Flexe just announced a $43 million investment from New York firm Tiger Global Management.

Continue reading Amazon’s One-Day Shipping Plan Boosts Logistics Startups

A regional court in Munich recently ruled that Amazon’s click-to-purchase Dash buttons for Prime members violate German consumer protection legislation. Based on the contention that the thumb-sized, adhesive Dash buttons do not always provide the latest pricing information, the court ordered Amazon to halt taking purchase orders through the Wi-Fi-connected devices. The decision follows a case brought against Amazon by a German consumer protection watchdog group that says it took action after fielding complaints by consumers. Germany is Amazon’s second largest market. Continue reading German Court Rules That Amazon Dash Button Violates Law

Amazon plans to build more Whole Foods stores across the United States, indicate sources, with the goal of adding more customers within reach of the company’s two-hour delivery service. The move is a transformation for the grocery store, which had slowed its growth in the years before Amazon’s 2017 purchase for about $13.5 billion. Although Amazon wouldn’t comment on expansion plans, sources say that Whole Foods staffers are searching for potential retail space in Idaho, Utah and Wyoming, which currently don’t have Whole Foods stores. Continue reading Amazon to Expand Whole Foods Stores, Prime Now Delivery

Although Amazon chief executive Jeff Bezos has touted the possibility of drones delivering packages, he’s now talking up human drivers. This summer, he declared that would-be entrepreneurs could earn $300,000 per year by investing as little as $10,000 up front in creating their own delivery businesses. Following in FedEx’s footsteps, Amazon now wants to build a national network of independent delivery people, offering discounts on vans and insurance and an endless supply of packages to deliver. Continue reading Amazon Seeking Entrepreneurs to Build Delivery Businesses

Amazon’s Prime program that offers two-day shipping to its 100 million members has become a standard that other retailers have struggled to meet. Last year, Target, Walmart and many Google Express vendors started offering two-day delivery, some of it free. The latest company to do so is Overstock.com, which claims it can reach 99 percent of the U.S. in two days from one distribution center in Kansas City, Kansas. In comparison, Amazon operates 75 fulfillment centers and 25 sortation centers. Continue reading Amazon’s Two-Day Delivery Sets the Bar for Today’s Retailers

Amazon’s shares rose to $2,050.50 on Tuesday, pushing the company’s value to over $1 trillion, making it the second U.S. firm to reach that pinnacle since Apple did so early last month. By the end of the day, shares fell to $2,039.51, below the $1 trillion mark. Amazon, which employs more than 550,000 people, generates more than $178 billion in annual revenue and captures 49 cents from every dollar spent on e-commerce. To continue its growth, Amazon is now offering its local Indian website and apps available in Hindi. Continue reading Amazon Briefly Worth $1 Trillion, Targets India With Hindi Site