Ups loses out on usps mail contract to fedex once again!

Discussion in 'UPS Discussions' started by Obi-Wan, Apr 24, 2013.

  1. Obi-Wan

    Obi-Wan New Member

  2. sendagain

    sendagain New Member

    What I don't understand is how the administration is so pro union until it comes to UPS. They have spent a lot of money to protect union jobs and then our company gets screwed.
  3. The inherent inefficiencies of the USPS clashed with the inherent efficiencies of UPS.
    We're probably better off without them.
  4. sortaisle

    sortaisle Livin the cardboard dream

    USPS hasn't used government money in a loooooooong time. They run off their own income. If FedEx beat us price wise, then they'll take it. FedEx doesn't expect to make a profit with their SurePost, they're going to use SurePost as a loss leader to expand their hubs and centers so they can capture more volume from us.
  5. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    It's all about costs. I imagine FedEx bid lower than ups. That simple really.
  6. coldworld

    coldworld BRAVE NEW WORLD

    FedEx counts on that account to keep their business going...they make sure they are the lowest bidder. If they didn't have that 10 billion coming in they could be in financial straights...especially considering they have 1/2 full planes from declining air volume.
  7. sortaisle

    sortaisle Livin the cardboard dream

    Oddly enough UPS's profit maker and FedEx's profit makers are polar opposites. Ours is air. We charge an arm and a leg for it, FedEx doesn't. FedEx's is ground, they charge a bit more than us on average (over here anyways) and we're in the middle between USPS and FedEx. We need the volume to make ground a little profitable. Our air is pure profit just about.
  8. ups hero

    ups hero Member

    I hate surepost!!! Especially when I order something and it gets delivered that way.. Such a pain..such a pain..
  9. ajblakejr

    ajblakejr Age quod agis

  10. Overpaid Union Thug

    Overpaid Union Thug Member Since 1999

    The USPS took a rather large bailout just last year. Or maybe it was the year before. Either way they had to pull their radio and tv ads that bragged about how they never used a "cent of tax payer money."
  11. beentheredonethat

    beentheredonethat Well-Known Member

    Where do you get your information from? When an oil company like Exxon gets to deduct the costs to drill oil wells people call that tax loopholes for large oil. Yet the USPS has thousands of buildings and they pay $0.00 in property tax. UPS we pay millions in property taxes. USPS for their fleet of vehicles pays $0.00 in excise tax on vehicles. UPS pays millions each year. When private companies needs to borrow money they have to pay based upon their own credit. USPS? They get to borrow with the full faith and credit of the US govt. I could go on, and on and on. I don't see how this alone doesn't show their are huge advantages the USPS has.

    Also, UPS service is Surepost, FDX has a simlar (although inferior) service called SMARTPOST. FDX uses different hub and fdr network for Smartpost then they do for FDX Ground. (which is also different then FDX Air) Although there are some buildings that are used by both.
  12. hellfire

    hellfire Active Member

  13. APettyJ

    APettyJ Active Member

    The "bailout" you speak of was not a bailout at all. You may or may not be aware that Congress currently has the Postal Service pre-funding their pension fund to cover the next 75 yrs, $16 billion, I believe, every year. It is this, more than any other reaaon, for why the USPS is currently in dire financial straits. Last year's "bailout" was Congress letting the Post Office defer $11 billion of that year's payment, basically allowing the post official to keep it's own money.

    The Post Office does not get any direct public funding; the tax exceptions you speak of isn't public funding, it is just another example of the Post Office keeping more of the money it has, although I do understand where you are coming from.
  14. APettyJ

    APettyJ Active Member

    I wonder if the threat of an impending strike had any play on this?
  15. Overpaid Union Thug

    Overpaid Union Thug Member Since 1999

    That is still a bailout. :)
    • Like Like x 1
  16. dilligaf

    dilligaf IN VINO VERITAS

    LOL I was just thinking along the same lines when I got to your post. If it wasn't for USPS, Fedex wouldn't have anything to do.
    • Agree Agree x 1
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