Amazon launched a beta version of its digital freight brokerage platform at freight.amazon.com that promised to allow users to “tap into the scale of Amazon as we extend our carrier network to give you the best-in-class service at great rates.”
At the moment, the platform is only offering 53’ dry van full truckload services in Connecticut, Maryland, New Jersey, New York, and Pennsylvania.
According to Yahoo Finance, Amazon’s brokerage platform will reportedly undercut current market pricing by 26% to 33%.
Amazon denies all claims they are undercutting the market.
“We work with many line-haul service providers in our transportation network and have long utilized them to carry loads for Amazon. This service, intended to better utilize our freight network, has been around in various forms for quite some time. The analysis suggesting dramatic undercutting of pricing is false.”
Amazon’s business strategy has been proven to operate on little to no profit margin in order to undercut competitors with the option to raise prices and turn a profit when other companies begin to go out of business.