Overpaid Union Thug
Well-Known Member
Amazon would have to establish their own hub system throughout the country in order to adequetly service all of the areas we do now. If they used their current warehouses as hubs they would fall well short of what they would actually need to take on all of the work that they currently divide out to UPS, FedEx, etc.. They would be spread out too thin. Much like FedEx Ground is now but much, much, much worse. They wouldn't need one hub/warehouse and extended centers for all of ours but pretty close. It took UPS over half a century to put the current "wheel and spoke" hub system in place. Part of that process included buying up parcel delivery companies that were already in place. Even if Amazon did that do supplement the warehouses they currently have they would still fall well short of what they need. Using their own full-time delivery drivers, or even part-time, wouldn't be cost efficient with a network that is spread out that much.
In short..... it would cost a ridiculous amount of money (which they don't have) for Amazon to add the additional facilities, vehicles, and employees needed to match what UPS/FedEx does. I like the idea of UPS buying them but I think that would be a little more complicated than we think. UPS needs to be aggressive in keeping as much Amazon volume as we can. The jobs lost at UPS would be staggering and this would affect stock price negatively and nothing lights a fire under corporate UPS's collective asses faster than the threat of a drastic drop in their precious stock holders' stock price. Maybe this, and only this, is keeping our otherwise incompetent sales force on their toes.
