Walmart delivers directly to your fridge
Walmart just announced that it is launching its own in-home delivery service this fall. Customers will be able to get groceries delivered directly to their refrigerators and countertops. The Walmart In-home Delivery Service will initially be available to around 1 million people across 3 states: Kansas City, Missouri; Pittsburgh; and Vero Beach, Florida. Walmart has not yet announced the exact launch date or specified the cost of the delivery service.
Online shoppers will be able to select In-Home delivery at the checkout. An employee will then collect their order and use smart lock technology to access their home. Each employee will wear a camera that sends the shopper a live video stream of the delivery, up until when they lock the door and leave. To further address issues of distrust and security, each employee is expected to undergo “extensive” training on how to properly enter shopper’s homes and safely store their goods. They will also be required to have worked for Walmart for at least one year and Walmart will include a bio for each in-home employee. The company also expects to soon start accepting returns this way. In-home customers will be able to leave items to be returned on their counters.
You can read more on this here.
FedEx breaks up with Amazon
Last Friday, FedEx announced that it is ending its U.S. Express contract with Amazon when it expires on June 30. to “focus on serving the broader e-commerce market.” Financial services firm UBS estimates that 80% of FedEx’s business with Amazon is tied to Express, which adds up to around $716 million. The firm estimates that 7.7% of FedEx Express packages in the U.S. come from Amazon.
According to a FedEx analyst, the move will bring “near-term pain for long-term gain”, as it may take a while for FedEx to refill its capacity with other shippers. Moody’s analyst, Johnathan Root, estimates that FedEx only receives an average revenue of $15 per Amazon package- $3.50 less than the overall average, making Amazon “one of FedEx’s least profitable customers on a margin basis.” So, who will take on FedEx’s Amazon volume? It is possible that the packages would need to move through UPS if slower delivery times weren’t a possibility. Amazon packages already represent 15% to 20% of volume at UPS. However, Amazon may also considering using in-house delivery options.
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“Polar Silk Road”: Cosco Shipping joins Sovcomflot on Arctic route LNG venture
China’s Cosco Shipping is entering into Arctic transport through its newest joint venture with Russia-based PAO Sovcomflot, to move liquefied natural gas (LNG) from Siberia to Western and Asian markets.
The companies will operate 12 ice-breaking LNG tankers from Russia’s Yamal LNG project along the Northern coast of central Siberia to parts of Northern Europe, japan, South Korea and China. The China Shipping LNG Investment Co. will operate an additional 9 vessels along the route. Just a year ago, Beijing released its first Arctic policy white paper, which stated that investments in the Northern sea route would be encouraged and it would carry out commercial sailings as part of a “Polar Silk Road.” This is yet another target of China’s Belt and Road Initiative. China is now set to surpass Japan as the world’s biggest importer of natural gas this year, as it moves away from traditional coal-based power and toward cleaner fuels.
Click here for a more detailed report.
Have a nice weekend.