Purple no more
Active Member
I just read an article about how Amazon is going to be delivering their own product and cutting out third party vendor, FedEx and UPS. I wonder what the powers that be think about that?!
They are using contractors too. Amazon has already moved their smaller volume to the post office. They might start delivering their own mid size boxes. They'll still keep their huge stuff in our system.I don't see how that is possible. At least not in the near future.
If the only way for Fedex to make money on ground is to have contractors, how will it benefit Amazon to hire their own fleet?
especially if they venture into rural America.
That is not their plan. Their operating plan is to deliver to major metros that have warehouses nearby.
The rude awakening is coming from mid size package companies that are not interested in handling Amazon volume as there is no profit in it. The regional based in my area has told them that they would carry their volume at their retail price list (which is higher than the deal they get through us.)
I doubt that Amazon will go away entirely for either UPS or FE. I suspect that volume growth from them will slow down and maybe even shrink in some markets (currently seeing some urban volume in our center going away but the rural volume is staying the same.)
I just read an article about how Amazon is going to be delivering their own product and cutting out third party vendor, FedEx and UPS. I wonder what the powers that be think about that?!
I don't think so. The profit margin on that stuff isn't very good coupled with the fact that it's mostly residential deliveries we're talking about with many customers in the outlying areas where retail stores are few and far between.Losing Amazon in its entirety would be disastrous.
I don't think so. The profit margin on that stuff isn't very good coupled with the fact that it's mostly residential deliveries we're talking about with many customers in the outlying areas where retail stores are few and far between.
In Massachusetts they have opened 2 of their own distribution centers & hired drivers (contracted)for like $100 bucks a dayI just read an article about how Amazon is going to be delivering their own product and cutting out third party vendor, FedEx and UPS. I wonder what the powers that be think about that?!
If you had no job, you'd find a way.Can a person even live in Massachusetts on a hundred bucks a day?
They are utilizing an Uber/Lyft style of operations, dangling the promise of "$18-25 per hour" to those foolish enough to believe that that's possible. Conveniently omitted are the associated expenses of using your personal vehicle in a commercial endeavor, much less the personal liability factor. I believe they are counting on an endless supply of fools. They might be right.