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I wonder why Charles is buying in a hurry?Is this going to be a...

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dim81

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12/09/19

10:27

Post #: 40393576
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Originally posted by MaryJane55: ↑

Hi all,

I'm sure many of you are aware that Amazon has just launched its DSP program. Where essentially Amazon is encouraging entrepreneurs to purchase trucks uniforms etc from them, as well as use their support services to create mini delivery companies under their umbrella. Take a look for yourselves: https://logistics.amazon.com/ and https://d3a8hw3k243rpe.cloudfront.net/static-assets/Download_Brochure.pdf

I have previously hypothesised along with others about the potential significance of the Amazon deal with GSW, summarised nicely below in the last few days (thanks Shiz), and I have included another of my older posts for completeness.

Previously I have not gone so far as to say I think GSW is underpinning the Amazon last mile logistics service.... So I'll say it now.

I think that GSW is underpinning the Amazon last mile logistics services.

One of the major arguments against this was that Amazon would never outsource their last mile tech. Well, they're now essentially franchising the whole thing out. Taking a look at what is offered under the new program to potential owners, technology is obviously on the list along with vans, uniforms etc. Tech would be a critical aspect of this model, and GSW fits perfectly. Essentially Amazon would be "on selling" GSW, and I imagine taking a cut as well (think similar to NA Williams). Rather than entrepreneurs downloading the app individually, I believe GSW has arranged with Amazon to be the "partner" for the tech support. They have partners for the trucks, uniforms etc. Why not the tech? When you sign up to the Amazon DSP program, you get GSW tech in the bundle. I would imagine it would be branded as Amazon, however the idea is essentially the same. GSW tech, being in a while label model, is ideal for this. Additionally it provides the ease of use to allow anyone to be able to run their own delivery company, with the dispatching, control and tracking. Do some digging and have a read of what is available, especially from the links above. Sounds exactly like the GSW offering.

As an example "According to Clark, “the level of ownership with people who own those businesses is super-impressive.” He adds that Delivery Service Partners are “using our technology and using our devices, so we can understand how their on-road safety is. We have lots of audit mechanisms associated with the supplier code of conduct to ensure that they’re treating their people fairly. We have a ton of customer metrics that let us know whether we have a great customer experience or not. We think the quality control is very high.” - https://www.fastcompany.com/4059079...tartups-to-help-deliver-its-packages

The statement that they are using Amazon tech (the white labelled GSW), allows Amazon to keep overall control through the technology provided to track overall metrics and still gain analytics insights. The customer experience metrics being yet ANOTHER feature of the GSW app. Essentially, Amazon is able to use GSW tech for reporting and control, while outsourcing the troublesome last mile logistics network. Brilliant. I'll add to this that from this perspective it makes complete sense that Amazon would have been the 40m strategic investment offer that GSW turned down.

This reframes my earlier thoughts on the new tech showing up in the Amazon logistics network discussed recently (tracking and photo delivery). With this new program completing the picture for me, I believe use within their own ecosystem was the trail, now we have gone live in this new program. I expect a milestone for the month of July (during August).

Another piece of the puzzle that fell into place with this program is the inclusion of the special offering for ex-military personnel. A while back GSW had a job out wanting to recruit someone with a military background. For the life of me I could not figure out why this was. Now, in light of this offering, I think that GSW has designed aspects (perhaps only in training) to allow an easy transition of ex-military personnel into the service, and the advertised role at GSW corresponded to this aspect of the new service.

I also was disturbed by the existence of the FLEX app previously, why se GSW if you have FLEX?. I think we will find (although Amazon reps have assured both programs will continue to run) that this new program, if successful, will put an end to the FLEX program. Amazon tried with FLEX in house, and its not been a raging success. Now they're taking an outsource approach, with GSW at its core.

I'm sure as you do your own research you will find more info, please share as I
would love to see what you find to support/disprove (if disproving, ideally before Monday morning...). I wonder if the recent price action has anything to do with this program, especially since it has coincided with the launch on the 28th.

I am also sure there will be a fair bit of criticism for this view, but it is just my own opinion. And everyone should do their own research and make their own decisions based on your risk profile. I am happy to take a big risk here for a potential return.

IMO, DYOR

MJ

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I wonder why Charles is buying in a hurry?

Is this going to be a definitive quarterly for the company?

GSW Price at posting: 51.5¢ Sentiment: Buy Disclosure: Held
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0 Great analysis

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