Lou Whiteman

They didn't really get into details.

Reading between the lines, I don't think they're targeting logistics in the box, like do the whole thing.

I don't think they really necessarily want to get something to the house.

They are doing B2B.

So if you think about it, if you're, say, Honda and you are shipping parts to dealerships all over the country, to get those parts...

from the port of Los Angeles to all your dealers, store them until the dealers need them.

That's the part they're going after.

It's more predictable.

It's more lucrative.

And I think the concern for a UPS or a FedEx is that if their margins disappear there, it puts pressure on the entire system.

It makes some of the less profitable parts of the business that are maybe kind of subsidized by the B2B, by this back office, it puts them at risk.

All in all, I'm kind of curious.

There's a weird kind of tension here between did Amazon really substantially overbuild to the point where they could actually take on even just a fraction of what UPS and Amazon has?

Or are they going to commit billions in CapEx here to build this out at the same time they're building data centers?

It has to be one or the other.

And I doubt it's A, and I don't think they're going to be B. So I think they're a player here, but I don't think they're just going to annihilate everyone or take everyone's business.

The why now is a great question.

And to some extent, the answer is this was always the plan.

So it might just be they've built out the critical mass to make it possible.

That took time.