Jason on @CNBC @SquawkAlley 12/24/15: @amazon @lyft @jack @twitter

TL;DR

Amazon has been operating secret flights in Europe, hinting at its plans to distance itself from UPS and revolutionize the shipping industry.

Transcript

welcome to squa gley for a Thursday on a Christmas Eve joining us at post n of course myself John Fort Kayla taly on a holiday shorten session Dows down about 35 points joining us today as well angel investor and entrepreneur Jason calacanis Jason good morning to you good morning Merry Christmas to everybody uh same to you man uh first up according... Read More

Key Insights

• 🌍 Amazon's secret flights in Europe suggest a move to distance itself from UPS and revolutionize the shipping industry.
• 🥳 Same-day delivery is becoming the new standard, and Amazon aims to meet this consumer expectation.
• ❓ The success of Amazon Web Services provides a blueprint for the company's entrance into the logistics industry.
• 😀 UPS and FedEx face a significant threat as Amazon looks to handle more of its own shipping and delivery.
• 🐕‍🦺 The shift towards e-commerce and the demand for quick shipping creates a favorable environment for Amazon's logistics services.
• 🍉 Amazon's willingness to take losses in the short term for long-term profitability is a key factor in its potential success.
• 👻 Some retailers are warning customers of potential delays during the holiday season, possibly allowing Amazon to position itself as the reliable option.
• 🤨 Lyft's acquisition of 5.3% investment by Saudi Prince Alwaleed raises questions about the strategic choice of investing in the number two company in a market.
• 💗 Lyft may struggle to grow internationally if every country it enters attracts investors and partners, potentially hindering its expansion.
• 🤨 Twitter's compromise in allowing Jack Dorsey to split his time between Twitter and Square raises doubts about his long-term commitment to both companies.

Questions & Answers

Q: Will Amazon's move to operate its own secret flights in Europe be successful in reducing its dependence on UPS?

Amazon's history of bold moves and its success in other ventures, such as Amazon Web Services, suggests that the company has a good chance of succeeding in its logistics services. With the rise of e-commerce and the demand for fast shipping, Amazon's strategy aligns with consumer expectations.

Q: How does Amazon's move affect UPS and FedEx?

Amazon's decision threatens UPS and FedEx, as the e-commerce giant aims to handle more of its own shipping and delivery instead of relying on these companies. The expectation for same-day delivery and the success of Amazon's logistics services could lead to a significant loss of business for UPS and FedEx.

Q: Is Amazon's expansion into logistics risky?

While there are risks involved, such as the high costs of building an end-to-end logistics network, Amazon's success in other ventures and its willingness to take long-term losses suggests that the company has a sound strategy. Consumers' demand for fast and affordable shipping creates a favorable environment for Amazon's expansion.

Q: Could Amazon's messaging about potential shipping delays from UPS and FedEx be a way to shift blame during the holiday season?

While this theory is possible, it is unlikely that Amazon's messaging about potential delays is solely motivated by a desire to avoid blame. Amazon's resolve to build its own logistics services demonstrates its intention to control the shipping process entirely, reducing reliance on external carriers like UPS and FedEx.

Summary & Key Takeaways

• Amazon has been running secret flights in Europe for the past 6 weeks, possibly to reduce its reliance on UPS and lower shipping costs.

• Amazon's strategy of building end-to-end solutions and providing same-day delivery is a major threat to UPS and FedEx.

• The rise of e-commerce has made quick and affordable shipping a consumer expectation, and Amazon aims to fulfill this demand.