Bernstein Relieves Amazon Entry Fears for FedEx Corporation, UPS Investors – BidnessEtc

Bernstein analyst David Vermon attributed the beginning of investors’ worries to Amazon.com, Inc.’s (NASDAQ:AMZN) move to set up 23 sortation centers across the country. He assured investors that the company was not entering the ground delivery business, the stronghold for FedEx and United Parcel Service, Inc. (NYSE:UPS).

Moreover, the bank noted that the e-commerce giant was insourcing postal injection operations, and not entering the ground delivery business. Mr. Vermon further noted that the corporation would have to operate in the densest areas to operate profitably, and carried an overall disadvantage against FedEx and UPS—limiting the marginal risk that Amazon’s moves posed to them. He added: “Amount of marginal Amazon volume at risk is low as expansion constrained by route economics / population density, and daily delivery requirement. As a competing service, low commercial appeal.”

Why Amazon Needs to Dump UPS and Fedex – Investopedia


Seldom is there a company that’s as dependent on others as Amazon.com Inc (AMZN) is dependent on Fedex Corp (FDX) or United Parcel Service Inc (UPS). The e-commerce giant sends out over 300 million packages a year and spent $13 billion on fulfillment costs in fiscal 2015. With fast shipping such a key component of Amazon’s business, shareholders should demand a fail-proof shipping service that is scalable and can handle Amazon’s future growth. Neither Fedex nor UPS can provide that service.

UPS Shares Valentine’s Day ‘Lovegistics’

  • 100 Million Flowers Flow Through UPS Global Logistics Network
  • Last Minute Cupids Can Ship as Late as Friday February 12th

Cupid will receive a helping hand this Valentine’s Day, as UPS® (NYSE: UPS) fills its network this week with flowers, steaks, sweets and gifts.

UPS will move more than 100 million flowers or 9 million pounds, to love birds around the United States. That’s enough to fill approximately 70 Boeing 767 cargo aircraft. Many of the roses and tropical flowers originate from Latin American countries, primarily Colombia and Ecuador. More than 90% of the imported flowers will travel through Miami International Airport (MIA) where UPS is the largest air cargo carrier. From the flower farm to the importer, the journey takes less than two days.

The Best E-Commerce Stock Is Not Amazon – Forbes

When most people think of e-commerce, the first name that leaps to mind is Amazon.com (AMZN). There’s good reason for that: according to Macquarie Research, the retail giant accounted for more than half of all e-commerce growth last year.

Put another way, of every extra dollar Americans spent online in 2015, $0.51 went to Amazon. But be that as it may, Amazon, with its razor-thin profit margins, lack of a dividend and nosebleed P/E ratio of 426, is far from my favorite way to play this trend.

Instead, I prefer a “pick-and-shovel” company that’s about as old school as they come: the 109-year-old United Parcel Service (UPS).

The Real Threat To UPS Is UPS – Seeking Alpha

Summary
  • UPS risks losing Amazon business in bits and pieces as the retailer explores new shipping options.
  • Amazon posing a competitive risk to UPS is minimal at this point.
  • What UPS really faces is the problem within.