59 Billion Reasons Amazon Is Not a Threat to UPS

[cheryl]

59 Billion Reasons Amazon Is Not a Threat to UPS - The Street

Recent tensions between UPS and Amazon have created a semi-hostile relationship. UPS couldn't handle the costs incurred from delivering Amazon's packages. In response, they jacked up their prices and Amazon threw a fit. Amazon relies on relentless cost cutting to stay afloat with their razor thin margins. Bezos' intention is to ruthlessly undercut any and all competitors. In response to UPS' price hikes, Bezos decided to start taking deliveries into his own hands.

 

[JL 0513]

59 Billion Reasons Amazon Is Not a Threat to UPS - The Street

Recent tensions between UPS and Amazon have created a semi-hostile relationship. UPS couldn't handle the costs incurred from delivering Amazon's packages. In response, they jacked up their prices and Amazon threw a fit. Amazon relies on relentless cost cutting to stay afloat with their razor thin margins. Bezos' intention is to ruthlessly undercut any and all competitors. In response to UPS' price hikes, Bezos decided to start taking deliveries into his own hands.

The article talks in terms of revenue and profit. Yes, UPS makes little delivering Amazon's business. However, If Amazon dropped us tomorrow, lots of UPSers would have to be eliminated. Right now, we're structured in delivering tons of Amazon volume. It has created lots of routes. Many of us see our loads and notice they are like 40+% Amazon.

THAT's what we have to worry about. Although right now, I'm not too worried. I think Amazon is trying to bite off way more than it can chew.

 

[IVE GOTTA PACKAGE 4U]

It's about time UPS started playing hardball.

 

[Brownslave688]

It's about time UPS started playing hardball.

We are about 2-3 years too late on this but hopefully better late than never.

 

[upschuck]

You mean, they aren't a threat now?

 

[Brownslave688]

You mean, they aren't a threat now?

According to this article.

Sounds like person was using common sense though