Guitarpicker
Member
Couple of things to keep in mind... Amazon packages have very slim profit margins.. almost nothing really ... while it does help our stop density in rural and residential areas - they are almost adding nothing to the profit margins - 30% of the volume - 5 to 6% of the profit ( I never want to work for a company that does not make a profit ) - in my opinion - where they can and most likely will hurt us is when they get their own network up and running with the current "fed-ex ground" model where they have very limited exposure to many of the cost drivers we have ( insurance - benefits - social security tax match - workers comp liabilities etc) they will start to pull 3rd party customers away from UPS and use them to supplement their own shipping cost - meaning build package / stop density within their own network - empty space does not pay well. Once we start to lose that market share to Amazon - if will start to show itself in a big way - and I am afraid in a rapid way... the major part of our business structure is based on package consolidation... we currently have better tech - but they have deep pockets and a will to prevail...