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Walmart vs. Amazon: Who Will Win

Walmart and Amazon are titans at war.  Each company makes moves in order to get an advantage over the other, which can have a major impact the US economy.  This has led to some very desperate maneuvers from one particular side.  In late June, news came out that Walmart was telling its trucking partners that it would consider ending any business relationship with them if they also worked with Amazon.  Why would Walmart do something like this? 

Walmart wants to secure its assets and trucking capacity before the Christmas season.  This means that the company has to make sure that it can get the trucks that it needs in order to ship its merchandise and goods.  If its trucking partners have a relationship with Amazon as well, then that could lead to them diverting trucks from Walmart in favor of Amazon.

Now if this rumor is true, then Walmart could be in trouble because it is illegal to tell a company not to do business with another company.  However, what does this mean for the trucking industry?  It would put trucking companies into a difficult situation.  Walmart and Amazon need many trucks in order to ship their goods and trucking companies can make a lot of money dealing with both companies.  Assuming that Walmart will break business relations with any company that also work with Amazon, trucking companies could be forced to choose between the two.  Should they work with Walmart or Amazon?

Now, this could all be a bluff by Walmart because Amazon's acquisition of Whole Foods Market in June.  However, if trucking companies do believe this bluff, they may choose to work with Amazon, leaving Walmart with no trucks.  How this situation will unfold is yet to be seen. 

For more information about the trucking industry, please contact us.

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