Amazon Inheriting McDonald's Legacy?
As of this writing, AMZN was a portfolio holding of Titan. This security may cease to be a portfolio holding at some point in the future.
Amazon just took a step towards inheriting McDonald's legacy.
McDonald's pioneered the franchise model, letting independent owners run their own local McDonald's restaurant. This helped spread thousands of store openings across the US.
Analogously, Amazon just announced it will be letting small business entrepreneurs run their own local delivery fleet for Amazon shipping. Amazon mentioned they could run up to +40 trucks while receiving guidance from the Amazon mothership.
Fascinating move by Bezos.
The challenge here, in our view, will be ensuring that each fleet receives a high and similar threshold of support. Running a delivery logistics business isn't flipping hamburgers. Perhaps the fix is hiring seasoned delivery vets as your first trial partners.
Once Amazon can crack the "playbook" that it provides to these entrepreneurs, this could really improve the last-mile delivery experience.