Amazon Prime, now with free, same-day deliveries

Coldworld

60 months and counting
It is amazing but they have a very low profit margin with not much overhead, now they are trying this same system of charging pretty much nothing for a package and trying to have a full fledged operations unit. Something has to give
He's a tech billionaire. ...next stop for him is breeding unicorns to fly the package to its destination. ..All of these tech guys are like this. ...
 

Coldworld

60 months and counting
They have been doing this in my area since peak already. They have other smaller services out with delivery vans FULL of amazon packages. These drivers are from a few different delivery services and from what I've seen their methods are quite flawed, packages mis delivered, sitting on people's lawns, and just lazily delivered. However I see these vans day after day delivering same day amazon product. A little scary if they get their act together...
Are you talking about ontrac....
 
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FrigidAdCorrector

Guest
SameDay is actually a new service that started up within the last two years and is only available in certain cities. It is serviced by FedEx office, not Express. The Express version is Next flight which has been around for ages but rarely used because it costs a small fortune. In all my time, I have seen it used once, in all the stations I've worked at.
It must have been the next flight then. I just pulled up the name on the site. You guys must make a killing on those
 
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selfcancelsignal

Guest
Don't forget, we have a secret weapon of huge profits: Orion!
You MUST run ODO! You MUST deliver same day parcels! You MUST find these parcels, even if they're on the 7000 shelf in a bricked out 1000!
 

CharleyHustle

Well-Known Member
Why? This is a money losing service at best.

I think you are maybe being a little short sighted here. What Amazon, and many other companies in this industry (including UPS) are banking on, is that more and more people are going to get their stuff delivered to their house instead of going to the store to get it.

One misunderstanding could be that this is NOT an air product. These are commonly ordered items warehoused at a fulfillment center. You must order by noon to receive it the same day. Here is an example of what I could see happening; package driver gets some air stops and bulk stops at a UPS center for morning, takes lunch and goes to amazon fulfillment center at 12:30, loads packages and delivers, repeat.

No feeders, no part timers, no building, no overhead for UPS, just provide the driver and truck.
 

UpstateNYUPSer(Ret)

Well-Known Member
I think you are maybe being a little short sighted here. What Amazon, and many other companies in this industry (including UPS) are banking on, is that more and more people are going to get their stuff delivered to their house instead of going to the store to get it.

One misunderstanding could be that this is NOT an air product. These are commonly ordered items warehoused at a fulfillment center. You must order by noon to receive it the same day. Here is an example of what I could see happening; package driver gets some air stops and bulk stops at a UPS center for morning, takes lunch and goes to amazon fulfillment center at 12:30, loads packages and delivers, repeat.

No feeders, no part timers, no building, no overhead for UPS, just provide the driver and truck.

This is what I see:

UPS has no involvement whatsoever with this service as it would not make any sense from a business standpoint nor could Amazon afford to have us "on call".

"Same day delivery" is ideal for a contractor-type operation, much like the guys who deliver the new phone books or the newspapers on motor routes.
 

OrioN

double tap o da horn dooshbag
Here is an example of what I could see happening; package driver gets some air stops and bulk stops at a UPS center for morning, takes lunch and goes to amazon fulfillment center at 12:30, loads packages and delivers, repeat.

not gonna happen with an hourly union driver... UPstate has the "bigger picture" of getting lower paid non-union drivers like those of Lasership or Ontrac to do same-day deliveries

heck, they may try Uber drivers to deliver too if the costs are similar to those owner operator subcontractors
 

oldngray

nowhere special
not gonna happen with an hourly union driver... UPstate has the "bigger picture" of getting lower paid non-union drivers like those of Lasership or Ontrac to do same-day deliveries

heck, they may try Uber drivers to deliver too if the costs are similar to those owner operator subcontractors

I agree it sounds more like using Uber than regular delivery drivers. Small niche market.
 

TUT

Well-Known Member
Yes, these innovative services from Amazon and others will need to prove themselves, but at the same time are large metro only type solutions, so they are limited in scope that perhaps just expand delivery business not take away from legacy carriers. Where I thought a few years back these services would possibly threaten small package delivery if successful (I continue to question success), I see it more now of as an niche complimentary service, drones included if that happens any time soon.

That said, this is part of Amazon being forced to pay state taxes has led them to, many more regional warehouses so that creates new logistics opportunities. Door closes, door opens.
 

TUT

Well-Known Member
A few months ago, Upstate mentioned UPS offers a similar same day service. One of these I think, Speed, Super, Sonic Air.

Both large carriers are doing it in some metro's, they aren't doing it for free or close to it, it is a premium. My educated guess is it isn't really taking off. I think the Big 2 feel pressure real or not, that they have to come up with new services because others are inventing new ways of delivery, but all very limited in footprint and really unproven. Fedex Office seems like it will be offering local delivery as well, which that is probably smart, the more usage they can get out of their stores the better I'd assume.

UPS is doing the mom and pop delivery holds vs Fedex Office delivery holds. One has more locations, albeit probably some questionable ones where the other not as many locations but a more professional front. I'd say this is where the two companies flip flop a little, you might think it would be the other way around for each carrier. Both are toying with locker delivery in metro's, again that could be more cost than return, but feel the pressure to innovate to make sure they aren't lapped by a start-up. All of this is really unproven or profitable for anyone imo at this time. But it is new and exciting, no?
 

TUT

Well-Known Member
Those same vans full of amazon product are the reason we missed this past peak by over hiring. Amazon subbed out a lot more work than we thought they would or could. It's not groceries, it's what our impatient society wants...right now

It isn't an impatient society, if someone is offering something better for you, you take it, that is as old as life itself.

I rather have same day then next day, doesn't matter what else happens. I don't sit back and wonder what it does to Amazon or the carrier, somehow agreements are made and jobs are paid to get done. If they didn't offer it I'm ok with that two, I get it. But since they are and for free... right? Amazon perhaps could still be an experiment waiting to explode, articles debate that possibility all the time. That said, there are some big loooong term investors playing the long game of controlling a big part of the merchant market for a long period of time.

As for the season, UPS will then counter and not over-hire, they'll learn and adjust, but your overall company package volume is fine with or without this. If you're quarterlies were bleeding packages, that is when you need to look over your shoulder a bit. A lot of the merchandise are new things that were never shipped at volume before.
 

MyTripisCut

Never bought my own handtruck
It isn't an impatient society, if someone is offering something better for you, you take it, that is as old as life itself.

I rather have same day then next day, doesn't matter what else happens. I don't sit back and wonder what it does to Amazon or the carrier, somehow agreements are made and jobs are paid to get done. If they didn't offer it I'm ok with that two, I get it. But since they are and for free... right?

.


It's not free Amazon Prime is 100$ annual and same day delivery is 6$ per order.
 

MyTripisCut

Never bought my own handtruck
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