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Amazon Considering Starting Own Express Airline
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<blockquote data-quote="59 Dano" data-source="post: 1975736" data-attributes="member: 23516"><p>You're oversimplifying it. I can go to the supermarket and buy a bunch of vegetables. Alternatively, I can start my own garden and raise a bunch of vegetables for a fraction of the cost. In addition to the money, the former costs me a trip to the store, which is about 20 minutes.</p><p></p><p>The latter requires several hours of my time, some tools, the weather has to be cooperative, and I have to get dirty. </p><p></p><p>Amazon can do what they're doing now or they can take on the hassle of starting and running an airline in order to save the pittance they're paying above cost to FDX/UPS (1% or so per pkg).</p><p></p><p></p><p></p><p>And they always will. Owning and operating their own airline doesn't change the fact that they have to pay to transport packages. They are paying ridiculously discounted shipping charges now because of their volume and the fact that they are subsidized via thousands of other shippers who get little to no discount. The money they would save is, in theory, a fairly negligible amount. </p><p></p><p>The theoretical savings would be offset by the exposure to risk of operating an airline. There just isn't much of anything to be gained even if things run as hoped. There isn't a big inefficiency that they can take advantage of.</p><p></p><p></p><p></p><p>You the brokest person on here and it hasn't stopped you from trying to be the business expert! I admire your determination.</p></blockquote><p></p>
[QUOTE="59 Dano, post: 1975736, member: 23516"] You're oversimplifying it. I can go to the supermarket and buy a bunch of vegetables. Alternatively, I can start my own garden and raise a bunch of vegetables for a fraction of the cost. In addition to the money, the former costs me a trip to the store, which is about 20 minutes. The latter requires several hours of my time, some tools, the weather has to be cooperative, and I have to get dirty. Amazon can do what they're doing now or they can take on the hassle of starting and running an airline in order to save the pittance they're paying above cost to FDX/UPS (1% or so per pkg). And they always will. Owning and operating their own airline doesn't change the fact that they have to pay to transport packages. They are paying ridiculously discounted shipping charges now because of their volume and the fact that they are subsidized via thousands of other shippers who get little to no discount. The money they would save is, in theory, a fairly negligible amount. The theoretical savings would be offset by the exposure to risk of operating an airline. There just isn't much of anything to be gained even if things run as hoped. There isn't a big inefficiency that they can take advantage of. You the brokest person on here and it hasn't stopped you from trying to be the business expert! I admire your determination. [/QUOTE]
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