Observations of an Internet Middleman (Level3) (was: RIP Network Neutrality

[owen at delong.com (Owen DeLong)]

On May 12, 2014, at 7:30 AM, joel jaeggli <joelja at bogus.com> wrote:

> On 5/12/14, 7:07 AM, Owen DeLong wrote:
>> 
>> On May 12, 2014, at 6:02 AM, Nick Hilliard <nick at foobar.org> wrote:
>> 
>>> On 10/05/2014 22:34, Randy Bush wrote:
>>>> imiho think vi hart has it down simply and understandable by a lay
>>>> person.  <http://vihart.com/net-neutrality-in-the-us-now-what/>.  my
>>>> friends in last mile providers disagree.  i take that as a good sign.
>>> 
>>> Vi's analogy is wrong on a subtle but important point.  In the analogy, the
>>> delivery company needs to get a bunch of new trucks to handle the delivery
>>> but as the customer is paying for each delivery instances, the delivery
>>> company's costs are covered by increased end-user charges.
>> 
>> Two words nuke your suggestion here: Amazon Prime
> 
> Once you build the capacity to reach every delivery point every-day it's
> maybe not enough to hope that people utilize that facility . decreasing
> the cost per package requires higher unit volume. The incremental cost
> of delivering the second package is much lower than the first.

My point is that above, he claims that shipping is per package and not flat-rate.

Amazon Prime contradicts that claim. It is flat rate for two-day shipping for
almost everything I purchase from Amazon.

Owen