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Challenging UPS and FedEx, Amazon Opens Its Shipping Network to All Businesses

5 days 23 hours ago
This week Amazon opened up its parcel shipping, fulfillment, and distribution "to businesses of all types and sizes." Any business can now ship, store, and deliver "using the same supply chain that supports Amazon," according to Monday's announcement of "Amazon Supply Chain Services." The move sent shares of UPS and FedEx "tumbling" Monday writes GeekWire. And though both stocks bounced back as the week went on, GeekWire sees this as the latest example of Amazon "turning its internal capabilities into products and services for sale..." "Amazon had already surpassed both carriers to become the nation's largest parcel shipper by volume, according to parcel-analytics firm ShipMatrix." Initial customers include Procter & Gamble, which is using Amazon's freight network to transport raw materials; 3M, which is using it to move products to distribution centers; Lands' End, which is fulfilling orders across sales channels from Amazon's warehouses; and American Eagle Outfitters, which is using Amazon's parcel service for last-mile delivery. The service can fulfill orders placed through platforms that compete with Amazon's own marketplace, including Walmart, Shopify, TikTok, and others... Peter Larsen, vice president of Amazon Supply Chain Services, compared the launch to the origins of Amazon's cloud business... In addition to putting Amazon in competition with existing players in the logistics industry, the move also raises questions about data privacy. Amazon has faced accusations of using nonpublic seller data to compete against merchants on its marketplace, which it has denied. Larsen told the Wall Street Journal that the company prohibits using supply chain customer data for its own marketplace decisions, noting that hundreds of thousands of Amazon sellers already trust the company to fulfill orders placed on rival platforms. The article notes that in his annual shareholder letter Amazon's CEO "said the company is also exploring selling its custom AI chips and robotics to outside customers."

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EditorDavid

GM Secretly Sold California Drivers' Data, Agrees to Pay $12.75M In Privacy Settlement

6 days ago
"General Motors sold the data of California drivers without their knowledge or consent," says California's attorney general, "and despite numerous statements reassuring drivers that it would not do so." In 2024, The New York Times "reported that automakers including GM were sharing information about their customers' driving behavior with insurance companies," remembers TechCrunch, "and that some customers were concerned that their insurance rates had gone up as a result." Now General Motors "has reached a privacy-related settlement with a group of law enforcement agencies led by California Attorney General Rob Bonta..." The settlement announcement from Bonta's office similarly alleges that GM sold "the names, contact information, geolocation data, and driving behavior data of hundreds of thousands of Californians" to Verisk Analytics and LexisNexis Risk Solutions, which are both data brokers. Bonta's office further alleges that this data was collected through GM's OnStar program, and that the company made roughly $20 million from data sales. However, Bonta's office also said the data did not lead to increased insurance prices in California, "likely because under California's insurance laws, insurers are prohibited from using driving data to set insurance rates." As part of the settlement, GM has agreed to pay $12.75 million in civil penalties and to stop selling driving data to any consumer reporting agencies for five years, Bonta's office said. GM has also agreed to delete any driver data that it still retains within 180 days (unless it obtains consent from customers), and to request that Lexis and Verisk delete that data. "This trove of information included precise and personal location data that could identify the everyday habits and movements of Californians," according to the attorney general's announcement. The settlement "requires General Motors to abandon these illegal practices, and underscores the importance of the data minimization in California's privacy law — companies can't just hold on to data and use it later for another purpose." "Modern cars are rolling data collection machines," said San Francisco District Attorney Brooke Jenkins. "Californians must have confidence that they know what data is being collected, how it is being used, and what their opt-out rights are... This case sends a strong message that law enforcement will take action when California privacy laws are not scrupulously followed."

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EditorDavid

Amazon Relents, Lets its Programmers Use OpenAI's Codex and Anthropic's Claude

6 days 2 hours ago
An anonymous reader shared this report from Futurism: In November, Amazon leaders sent an internal memo to employees, pushing them to use its in-house code generating tool, Kiro, over third-party alternatives from competitors. "While we continue to support existing tools in use today, we do not plan to support additional third party, AI development tools," the memo read, as quoted by Reuters at the time. "As part of our builder community, you all play a critical role shaping these products and we use your feedback to aggressively improve them." It was an unusual development, considering the tens of billions of dollars the e-commerce giant has invested in its competitors in the space, including Anthropic and OpenAI... Half a year later, Amazon is singing a dramatically different tune. As Business Insider reports, Amazon is officially throwing in the towel, succumbing to growing calls among employees for access to OpenAI's Codex and Anthropic's Claude... Given the unfortunate optics of opening the floodgates for Codex and Claude Code, an Amazon spokesperson told the publication in a statement that teams are still "primarily using" Kiro, claiming that 83 percent of engineers at the company are leaning on it.

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EditorDavid