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An Amazon-branded Boeing 767 freighter, nicknamed Amazon One. Photo: Stephen Brashear / Getty Images

Amazon's move to provide shipping services to its business customers extends a trend at the e-commerce giant of subsidizing its operations by converting a cost center to a revenue source. For the first time, it puts Amazon in direct competition with key logistics providers FedEx, UPS and the U.S. Postal Service.

Why it Matters: Amazon has a history of disrupting incumbents’ billion-dollar categories (think: Amazon Web Services). Expect Delivery-as-a-Service (DAAS) to enter the e-commerce lexicon and shipping expenses to reduce their drain on the company’s earnings.

Amazon can now capture margin shared with shipping partners (increasing profitability), lower costs through scale (extending its advantage over e-commerce competitors), and further entrench itself as a critical supply chain partner for other online and offline retailers.

What's next: Logistics incumbents will want to oppose the move as anti-competitive, but consumers and businesses will benefit from lower costs — rather than be subjected to monopoly prices — so there's little reason to expect anti-trust traction.

The big picture: Amazon provides a master class on building a virtuous cycle, continuing to lower its costs as more third parties ship with Amazon. Those savings could then be reinvested into lower prices for Amazon's consumers, ultimately extending its reach over the competitors who use its DAAS service.

Tige Savage is managing partner at Revolution Ventures.

Go deeper

The Biden protection plan

Joe Biden announces his first run for the presidency in June 1987. Photo: Howard L. Sachs/CNP/Getty Images

The Joe Biden who became the 46th president on Wednesday isn't the same blabbermouth who failed in 1988 and 2008.

Why it matters: Biden now heeds guidance about staying on task with speeches and no longer worries a gaffe or two will cost him an election. His staff also limits the places where he speaks freely and off the cuff. This Biden protective bubble will only tighten in the months ahead, aides tell Axios.

Bush labels Clyburn the “savior” for Democrats

House Majority Whip James Clyburn takes a selfie Wednesday with former President George W. Bush. Photo: Patrick Semansky-Pool/Getty Images

Former President George W. Bush credited Rep. James Clyburn with being the "savior" of the Democratic Party, telling the South Carolinian at Wednesday's inauguration his endorsement allowed Joe Biden to win the party's presidential nomination.

Why it matters: The nation's last two-term Republican president also said Clyburn's nod allowed for the transfer of power, because he felt only Biden had the ability to unseat President Trump.

GOP research firm aims to hobble Biden nominees

Alejandro Mayorkas. Photo: Joshua Roberts/AFP via Getty Images

The Republican-aligned opposition research group America Rising is doing all it can to prevent President Biden from seating his top Cabinet picks.

Why it matters: After former President Trump inhibited the transition, Biden is hoping the Republican minority in Congress will cooperate with getting his team in place. Biden hadn't even been sworn in when America Rising began blasting opposition research to reporters targeting Janet Yellen and Alejandro Mayorkas.

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