Final answer:
Private warehouses can increase costs because of shipping challenges, they can be vulnerable to technological failures or disasters, and may result in social and economic side effects such as income disparity and increased reliance on low-skilled labor.
Step-by-step explanation:
Possible drawbacks of private warehouses include increased operational costs due to shipping over congested street networks and jammed freeways, which can reduce profits. Locations away from these congestions allow more accessible transport and thus can be more cost-effective. Other challenges include the risks associated with technological failures, such as total system failure or malfunctions due to disasters, and issues like security risks and the loss of privacy. Additionally, the privatization process can lead to initial hardships like political and economic changes, resulting in the uneven distribution of income, rise of corruption, and increased pollution. The example of Amazon's warehouses shows that while there are advantages to economies of scale, the reliance on low-skilled labor and automated systems can create vulnerabilities in case of technological dependence or systematic attacks.