Apple?
To my understanding Apple has been primarily a Fedex account for a solid decade. Any company of size will use all carriers to some extent.
Apple?
Solution for this whole problem with FedEx. Unionize their ground employees and get the states to make them eliminate their "Independent Contractor" business model and even the playing field and the difference in pricing and transit times goes away. While I've had my issues with unions and don't agree with many of their stances on things, I feel that this is the only way to compete with FedEx in the long haul. Eliminate their advantage and even the playing field. With UPS and FedEx on an even playing field, we win hands down and if we don't, then it's our own darn fault.
There is a top Fed Ex sales rep who lives on my route. We have talked on many occasions about the competitive nature of our pricing. Actually she has admitted that at this point there is no account that Fed Ex can beat us on due to pricing. She has explained that she will go in to sit down with a executives from a company and try to show them some sort of total pricing advantage form that Fed Ex uses. Subsequently UPS will counter the offer. Basically she explained that when it comes down to it it's basically rather or not a company likes Fed Ex or UPS. She has stated though that its a lot harder than you realize to get a company away from UPS. Also side note. She has said that company's like On Track are much more dangerous to Fed Ex and UPS then each other.
I AM USING BOLD LETTERS NOW TO MAKE THIS EASIER TO READ. I wont use caps again. sorry.
So what would prevent UPS FROM BECOMING AN ONLINE RETAILER IN THE FUTURE? I PREDICT AT SOME POINT IN THE FUTURE IF AMAZON,Walmart,Zappos,etc actually ever do really push UPS into a corner and dont want to play ball then WATCH OUT FOLKS! UPS HAS THE CASH,UPS BUILT AMAZON FROM THE GROUND UP AND MADE THEM WHAT THEY ARE TODAY(UPS IN A SENSE OWNS PART OF AMAZON).Think how easily UPS could become an online seller and compete with Amazon or any online seller in the world.
Amazon has a website and warehouses. Ups picks up and delivers Amazons orders. Could UPS create a website(maybe a new UPS brand) and become an online seller and build warehouses and do the same thing as Amazon? YES in 18 months.
Could Amazon become the largest transportation company in the world with lots of airplanes and a huge feeder network? Not in this life!
If this ever happens and I predict it will. UPS stock will soar.
One. You still used Caps.
Two. You don't have to use bold. We can read all the same and even if you are having an epiphany, who's listening on UPS's end?
Three. Would the warehouses be union? That will make it hard to compete.
Four. It's still a lot of new/extra work and risk. If you are seen as a competitor like that, those in that sector (a lot) who use UPS today may feel threatened and you could lose their business immediately. You would have to dominate tremendously, seems like a lot of risk. As big as Amazon is, Amazon isn't what keeps UPS rolling.
I predict it will not happen.
Don't worry those that leave come back eventually.. The Price might be better but the service they are going to get isn't going to be. Every Fed Ex car I have seen during peak was empty compared to mine that was stuffed full.
Ofcourse the new UPS jobs created would be union. Why wouldnt they be silly? UPS is a union company that currently makes record profits in the billions.
People absolutely hate SmartPost. So if UPS volume is diverted to FedEx SmartPost, people may just see more value in upgrading to Amazon Prime. If UPS can retain the air volume then we may have a winning proposition.
Has anyone heard what level of service FedEx plans to use for Amazon? They currently use SmartPost for most of the super saver shipping delivered by FedEx.
i can see that with Fedex HD or Ground, because they're normally not getting paid by the hour... come on, wait that extra minute to make service!
UPS could have online storefronts for many brands TUT. UPS would be essentially cutting out the middle man. Amazon is just a seller of other peoples stuff. UPS could do the same.
Ofcourse the new UPS jobs created would be union. Why wouldnt they be silly? UPS is a union company that currently makes record profits in the billions. Wallstreet loves UPS by the way. Go figure.
TUT UPS would still remain a shipping company. Its just that as a consumer you would have the choice of buying an Apple product or a Fender guitar or a shirt from Kohls etc, using UPSs online website.
Now Amazon and UPS are currently in bed together but if there is ever a divorce(if Amazon cheats on UPS). 18 months and UPS is up and running selling tvs for Sony and vacuums for Dyson.
Apple or Dyson or Nike or Levi or Microsoft or Sony or any brand would be more than happy to allow UPS a shot at selling their products. Walmart and Amazon not so much.
There is no downside for UPS. The online retail landscape is changing fast TUT with Amazon paying sales tax now and building warehouses everywhere and trying to compete with Walmart and the same day delivery idea.
UPS has the cash. UPS is already everywhere and is the world leader in logistics. Did I mention UPS has the cash. UPS also enjoys a real presence in Europe and Asia .
Why would UPS just sit on the sidelines and just stay only in the logistics Biz if they started losing real market share to other shippers(beat the dead horse) when they could easily just get in the game and win at online retailing.
So TUT do you think the folks down in Atlanta have discussed my idea? You bet they have. And so has Amazon.
Do I think they have discussed this? Perhaps, but not seriously enough at the highest levels that it would take. You do have a Supply Chain division that could be looked at as part of what you are talking about but not being the actual store front, but doing more advanced logistics for said chains. You could be correct in single brands being agnostic to UPS, but there are other companies, like Target, Wal Mart, Amazon, Sears, Pennies etc that sell many brands themselves that would immediately be UPS competitors whom some may use UPS shipping today, at would become instantly at risk business. Would the UPS Merchandise Store be big enough to make up for all rippling effect packages it would lose?
Saying UPS is sitting on the sidelines, they are a package transportation company, they aren't sitting on the sidelines for their industry. They do respect their customers and there really is a trust between the two to keep jobs clear and stealing industries like this would send a big message. There are shippers today that do have fear giving any information out to even carriers as they see the same possible things that you describe. It's a big step, risky step jumping into that sector for UPS, you could have fringe companies that wouldn't even be directly affected by such a move, they could think they might be next, trust could become a big issue. It's a huge, bold, risky move, I don't see it unless some major game-changer happens to the market as a whole.
Yes I completely agree it would be risky in many ways. ......
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I would imagine this has been discussed more than once in Atlanta.
My brother in law is a mailman and he just showed me a USPS employee vid that shows the postmaster general and Scott Davis talking about UPS hauling the mail with our planes. Did Fed Ex really lose that contract??? Fred S warned investors last summer that was a possibility, but that was the last I remember hearing anything about it.
Just a note that last week FedEX told Amazon here in TN that they could not handle any more volume. Amazon asked us to take up the slack. Also FedEX had screwed up Macy's bill in the fall. As a "we are so sorry" FedEX gave Macy's free shipping for all of December.
Wow! Strange that I have seen quite a few Macy's shipments this month..