fbpx
Monday, 02 August 2021 22:21

The Rise of Amazon and How It Impacts the Collision Repair Industry

Written by David Roberts and Raul Salinas, Focus Advisors Automotive
The Rise of Amazon and How It Impacts the Collision Repair Industry Amazon

Index

...getting these vans back on the road and earning revenue for the owners, so pricing of repairs will reflect the premium on fast turnaround. Some shops have even developed mobile repair capabilities that allow DSPs to minimize downtime for the vans and keep them on the road.

 

For MSOs and shop owners, DSP repairs are a small but growing opportunity to address the needs of small fleet operators with high on demand requirements.


When it comes to collision services, DSP vans generally have modest repair requirements, but the work is constant and demands rapid repairs to keep the vehicles on the road. Services typically range from small item replacements like door handles, mirrors and windows to other minor body damage.


The Future of Delivery Service Partners


As the public shifts preferences towards electric and other fuel-efficient types of vehicles, Amazon is both leading with new technologies and following by rapidly adopting existing models.

 

In 2019, Amazon co-founded The Climate Pledge in its efforts to be net-zero carbon neutral by 2040. Shortly later, Amazon announced its partnership with start-up Rivian, investing $7 million to produce 100,000 electric trucks. As Rivian Prime trucks start hitting the road, one can expect the current DSP program and its operating base to change.

 

Rivian vans will roll out slowly and will likely have proprietary parts. However, it is never too late to start looking for new opportunities.


In similar developments, Amazon’s Prime Air program, which is still in the works, aims to provide last-mile drone delivery directly to consumers. This shifts the balance...