59 Billion Reasons Amazon Is Not a Threat to UPS

Discussion in 'The Latest UPS Headlines' started by cheryl, Jan 23, 2016.

  1. cheryl

    cheryl I started this. Staff Member

    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.
     
  2. JL 0513

    JL 0513 Well-Known Member

    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.
     
  3. It's about time UPS started playing hardball.
     
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  4. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

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

    upschuck Avatar bet gone wrong

    You mean, they aren't a threat now?
     
  6. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    According to this article.

    Sounds like person was using common sense though