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Faster Shipping

2016.02.01 09:15 PT

[ GeekWire ] Taylor Soper:

Increasing the number of Prime members is a big deal for Amazon. Members spend more on average, about $1,100 per year compared to the $600 per year for non-members, CIRP said its report. Prime members also tend to be more loyal, and Amazon retains approximately 95 percent of them after one year, CIRP said in July.

CIRP is Consumer Intelligence Research Partners. Prime to most Amazon customers is free 2-day shipping. My family, along with about 60 to 80 million other Prime subscribers, love fast shipping. I don’t know exactly how often or for what reason but I received free 1-day shipping for a few items I ordered not long ago. My items arrived the very next day. That was exciting. Amazon is rolling out Prime Now in some markets that gets your stuff to your door the same day. Uber is joining in the fun with its UberRush service, available now in San Francisco, Chicago, and New York City. I’m guessing Amazon will be making use of UberRush.

UPS, FedEx, DHL, USPS, etc. are like taxi companies. They are shipping companies with their own fleet of vehicles. Uber has shown it can disrupt that model by allowing anyone with a good driving record, a 4-door car, and a Facebook-connected smartphone to drive people around. Uber is now stacking delivering goods on top of that. Smart. Uber will disrupt the traditional model of shipping goods, sooner rather than later.