Discussion in 'UPS Discussions' started by kingOFchester, Feb 9, 2016.
Interesting article. I saw an Amazon delivery van almost drive head on into a minivan full of kids a couple days ago. Wonder if they will hire the same type of pilots and feeder drivers as their package van guys.
I do fear this company. No joke.
I have seen drivers in my center do crazy driving like this. We are a bonus center.
Me too lol. I am serious, their vans are full in my neck of the country. Scary stuff.
Here's how ups and fedex defeat this:
Amazon: "we are starting a global supply chain"
Ups and Fedex: " ok. Your rates are now full retail regardless of volume. No more special pick ups, feeders or commit times or planes and ARS services and call tags are no longer a priority . This will be going in to effect on your next shipping contract.
Amazon:"_______ ummm there goes our thin profit margins and customers because we can't get the USPS (who owns no planes) or local region carriers to handle our volume. We can't deliver it yet because we outsource all our delivery operations.
Game over. It's coming.
Ups is already planning to walk away from Amazon in less than 5 years. Fedex is rumored to want to drop them sooner. Apparently Fred Smith doesn't like bigger scumbags then him.
ooo... I've got a sales lead!!
The USPS doesn't need planes, FedEx carries it all. So FedEx would still get that business, just in a different way.
Not to mention the DOJ would probably investigate us for Anti Trust violations.
People far above me are paid quite well to worry about this.
Don't think for a minute that fedex won't limit that volume though.
I don't think telling Amazon that we aren't going to take their volume anymore or if we do, we will charge more, warrants Antitrust violations. We aren't obligated to take their business at break even or a loss. I think UPS needs to push back on them because Amazon seems to be able to go out into the media and say whatever they want regarding our business.
It's time to "phase " them out either by charging more or just walking away over time. I'm sure there is a strategy in place. A 100 year plus company isn't going to go down without a fight.
Also isn't it great to see another Amazon thread????
I'm willing to bet there is a clause in the contract saying they have to take a certain amount of volume. Plus, if they're flying planes half empty, and can make money on filling it with USPS volume, they're going to.
It's not antitrust if we just say bugger off. It's if we AND FedEx do. It looks fishy at first. I'm not saying we'd get fined. But I wouldn't doubt there'd be an investigation.
Not really, these threads should have been moved to the competitor section:
I could see a price increase which everyone else has to pay being put in place for Amazon as well.
After all, why should they be exempt from price increases?
Being in Montana, I am not worried about amazon at all. Amazon would have to utilize ups or fedex to get their stuff delivered in a state like ours
Yes, the same people that are forcing Orion regardless if we can beat the miles. The same company that is so short sighted that they cut trips and have failed service to meet todays numbers vs tomorrows growth or even retention of customers. The same company that pushes so much volume thru Preload that packages are getting damaged. I could go on.
I am not counting on those far above us, they haven't a clue of what is going on at the center level.
I love how most of us have no faith in the powers above, until we talk about Amazon.
Is ups to big to fail? Kodak, the inventor of the digital camera was once considered to big to fail.
Is Amazon going to be a competitor?
Amazon is looking to cut cost and increase profitability. Amazon won't be hauling Overstock, Wayfair, ebay, Best Buy, or any of their competition. That is unless they buy them like they did Zappos.
There is no way Amazons competition would support an Amazon Delivery service to help their competition be more profitable.
Now the down side. There are a lot of small businesses that fulfill orders for Amazon outside of the Amazon DC's. I'm sure those businesses would use an Amazon Delivery service or an approved carrier to take advantage of competitive rates.
Bottom line is I'd be concerned about lost revenue. Lost volume of this size would lead to lay offs at UPS. The company would find a way to adjust and maintain by sacrificing payroll.
Very well stated. We have seen concessions in contracts already, just the beginning. More competition, more concessions to stay competitive.
Does anyone know when Amazons contract runs out?
I don't think anyone believes ups is too big to fail but also we've been around over 100 years and logistics is not an easy infrastructure to build. If Amazon thinks they'll do it overnight like they try everything else, well they'll fail. They also are starting to spread themselves way too thin. They have major issues too. They are about to go through the "wal-mart" syndrome and that's not good. Don't think for a second that if we walked away from Amazon that would not hurt them either.
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