Amazon: Built on Welfare Dollars
A House of Cards
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This Report completes the trifecta of our initial reporting on the big-3 private logistics companies. We will complete this series with our final report on USPS in coming weeks, before we move to the topic of regional and niche players. Those looking for additional insights around parcel shipping would enjoy:
Brown No Longer: UPS Struggle for Relevance.
With this report, we are lifting the kimono a little on one of the least understood but most reported logistics story: Amazon. Our key conclusions:
Amazon is built on the backs of Government Welfare and Subsidies, rather than innovation as is often reported. It is estimated in our Report that tax-payer subsidies contribute to 60 cents per FulFilment shipment and $1 per transportation shipment Amazon handles, resulting in a drag of roughly $10 to $12 billion. Even if half of these subsidies were to be removed, Amazon Retail wil…
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