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Will Amazon Fire UPS Over Christmas Catastrophe?
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<blockquote data-quote="Brownslave688" data-source="post: 1290687" data-attributes="member: 34439"><p>Why wouldn't they raise rates? Really it's very shirt sighted if ups doesn't cut the discount. </p><p></p><p>Say 30 years we had been able to raise rates on fed ex? It would of put them out of business before they could become the competition. If amazon is truly looking to deliver their own stuff ups is enabling them to do so by cutting their rates so drastically. </p><p></p><p>With full rates that 2-3 billion loss becomes much much more. Their profit margin goes from a few pennies a share to big time in the red. A few quarters of this and the investors start dropping like flies. Investment money is the only thing propping up amazon. It's sure all hell not profit</p></blockquote><p></p>
[QUOTE="Brownslave688, post: 1290687, member: 34439"] Why wouldn't they raise rates? Really it's very shirt sighted if ups doesn't cut the discount. Say 30 years we had been able to raise rates on fed ex? It would of put them out of business before they could become the competition. If amazon is truly looking to deliver their own stuff ups is enabling them to do so by cutting their rates so drastically. With full rates that 2-3 billion loss becomes much much more. Their profit margin goes from a few pennies a share to big time in the red. A few quarters of this and the investors start dropping like flies. Investment money is the only thing propping up amazon. It's sure all hell not profit [/QUOTE]
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