Amazon Considering Starting Own Express Airline

[59 Dano]

I'm not trying to be anything, just pointing out the obvious. I believe they're contracting with another business to handle the airline aspect. And I'm betting that if this goes forward it's because they've got experts that have determined it's worth their while to do so. You're the one saying it won't work. What do YOU know that they don't?

The obvious is that they are taking on an incredible amount of risk and expense to save a penny or so on the dollar. It might run just as efficiently as they hope it does. The only problem is that there isn't much to be gained from it, and I'd bet all I have against all you have that they'll come to the same conclusion, with or without actually making an attempt at it.

By the way, being broke is transitory. And I'm broke right now because your favorite company wouldn't restore my percentage of range even though policy clearly states that they could have in the situation I was rehired in. The best way to deal with that is to get away from this company which will surely happen. Meanwhile I'll keep pointing out that the quality of this company is demonstrated by the type of people who defend it.

You've been posting about how broke you are ever since I first starting reading posts here. Like many of the others, nothing is your fault, either.

 

[59 Dano]

I think this will allow them to offer more items with prime shipping. That seems more inline with how they operate. Profits don't matter as much as gaining business to them. If they can crisscross the country themselves and pay ground shipping for final mile it opens up more items for them to break even on.

So they're going to go through all this hassle because they only want to break even? ROTFLMAO!

 

[59 Dano]

No. An Amazon plane full of small high-value packages equals a lot of revenue, because Amazon not only gets the money from the sale of the item, but they generate additional profit by providing timely, premium transport.

If you say so.

Don't you think Amazon is going to tack-on a hefty charge that not only covers their costs, but also provides a profit?

Which would duplicate an existing overnight service at a higher cost with no added value to the service for the consumer.

 

[It will be fine]

So they're going to go through all this hassle because they only want to break even? ROTFLMAO!

I think they'll happily break even on some products if it increases their prime memberships. Prime customers spend much more than regular ones.

 

[Gone fishin]

There's always a next big thing. Amazon could be gone in 10 years

 

[MrFedEx]

So they're going to go through all this hassle because they only want to break even? ROTFLMAO!

1. Amazon can have more control of the delivery process. That way, they don't have to listen to our excuses for poor service.

2. Which generates more profit, 50 1# packages, or 1 50# package?

3. Maybe a lot of Amazon customers aren't really receiving overnight services from Federal Excuse. If they are, it's probably late.

4. There are plenty of wealthy consumers who will pay ridiculous amounts of money for "must have now" items the rest of us either cannot afford or are willing to wait for. Amazon knows this is a big part of the "new" consumer. They want their device, game, clothing,CD etc. now, and they have both the means and desire to pay what it takes to get it. The new generation doesn't really care about owning a home or car. They want to be connected and have their toys and apparel.

5. Amazon is cutting-edge. FedEx isn't.

6. None of this means anything at Station One.

 

[Gone fishin]

Dhl bought an existing network in airborne express and lost a million a day. Not an easy as he thinks

 

[vantexan]

You've been posting about how broke you are ever since I first starting reading posts here. Like many of the others, nothing is your fault, either.

And like so many in management you want to look down your nose at those who choose to stay on as couriers, but your vaunted position wouldn't exist without the work we do. Here's the difference between you and I...your management class lies and cheats and abuses to line your pockets while expecting us to be above all else trustworthy, willing to sacrifice our future for the benefit of your's.

 

[It will be fine]

Dhl bought an existing network in airborne express and lost a million a day. Not an easy as he thinks

The difference is Amazon is not trying to build an entire network. They will only service their own freight in select markets.

 

[MrFedEx]

The difference is Amazon is not trying to build an entire network. They will only service their own freight in select markets.

Bingo. Exactly what I've been trying to convey to Dano. However, his lead/kryptonite management helmet prevents entry of all facts and logic.

 

[UpstateNYUPSer(Ret)]

Dhl bought an existing network in airborne express and lost a million a day. Not an easy as he thinks

They lost money because they tried to undercut the market.

 

[Gone fishin]

You got that right

 

[TUT]

No. An Amazon plane full of small high-value packages equals a lot of revenue, because Amazon not only gets the money from the sale of the item, but they generate additional profit by providing timely, premium transport. Don't you think Amazon is going to tack-on a hefty charge that not only covers their costs, but also provides a profit?

I would assume they wouldn't. I would take this news as they think they can do it cheaper. If they can do it for the same cost or cheaper, why would they raise freight prices to consumers? That isn't how Amazon's been operating. It would be a bit funny if they did start their own carrier service and then start charging for freight, customers will then say "Please can we have UPS, Fedex and USPS back with free 2 day?".

There are two possible wins for them, will they get one or both? 1. Save money. 2. More timely delivery.

It is all possible it is just a complimentary seasonal style service to handle the bumps in the road which carriers aren't willing to risk at the price Amazon is willing to pay them.

 

[Fred's Myth]

Amazon is a NON-Rev account with Express with minimal loading priority, meaning their freight gets bumped whenever necessary. If Bozos (aka Bezos) thinks he can match Fedex' economies of scale by implementing his own airline, more power to him. I'm willing to bet his potential savings will be offset by higher freight charges on anything that does end up with other freight companies due to volume decreases=lost discounts. I'd actually like to see Fedex play hardball this time.

 

[MrFedEx]

I would assume they wouldn't. I would take this news as they think they can do it cheaper. If they can do it for the same cost or cheaper, why would they raise freight prices to consumers? That isn't how Amazon's been operating. It would be a bit funny if they did start their own carrier service and then start charging for freight, customers will then say "Please can we have UPS, Fedex and USPS back with free 2 day?".

There are two possible wins for them, will they get one or both? 1. Save money. 2. More timely delivery.

It is all possible it is just a complimentary seasonal style service to handle the bumps in the road which carriers aren't willing to risk at the price Amazon is willing to pay them.

They can't really operate the planes more cheaply. A 767 freighter is around $600,000 per month just to lease it, and they cost several thousand dollars an hour j to operate (fuel, crew etc.). I doubt Amazon is going to sink that much money into a seasonal deal, and airplanes don't lease that way.

They have bigger plans.

 

[bacha29]

Well guys, there must be something to this. CNBC reported just a moment ago that according to a story in today's WSJ Amazon is seeking to reduce it's ties to UPS. citing increasing volume and higher shipping costs. Now is this thing for real or is it an attempt by Bezos to get even more favorable tems from UPS or X?. Whatever the outcome all it will mean for the little Ground contractor more money placed at risk and no control whatsoever as to it's fate

 

[vantexan]

Well guys, there must be something to this. CNBC reported just a moment ago that according to a story in today's WSJ Amazon is seeking to reduce it's ties to UPS. citing increasing volume and higher shipping costs. Now is this thing for real or is it an attempt by Bezos to get even more favorable tems from UPS or X?. Whatever the outcome all it will mean for the little Ground contractor more money placed at risk and no control whatsoever as to it's fate

With FedEx Ground chipping away at UPS they have to make up revenue somewhere. Amazon sees the writing on the wall, knows it must control it's own future by reducing shipping costs rather than be held hostage by shipping companies.

 

[TUT]

Well guys, there must be something to this. CNBC reported just a moment ago that according to a story in today's WSJ Amazon is seeking to reduce it's ties to UPS. citing increasing volume and higher shipping costs. Now is this thing for real or is it an attempt by Bezos to get even more favorable tems from UPS or X?. Whatever the outcome all it will mean for the little Ground contractor more money placed at risk and no control whatsoever as to it's fate

I don't think there are more favorable terms to be had, my hunch is the carriers have been increasing their costs to Amazon, so why would they now take less again?

 

[TUT]

With FedEx Ground chipping away at UPS they have to make up revenue somewhere. Amazon sees the writing on the wall, knows it must control it's own future by reducing shipping costs rather than be held hostage by shipping companies.

Certainly. Now we'll get to see if they can pull it off. Is transportation easy? What kind of shortcuts are they going to make to create these savings? Will they work? It's a somewhat predictable move, but also has plenty of risk in it, I bet Jeff agrees, I don't think it's a slam dunk decision. So what was it 5 years or so ago when UPS answered the competitor they fear the most is Amazon? I think the drivers have it right here, overall it will have a bigger affect on driver employment than company profitability. We'll see.

 

[Brownslave688]

With FedEx Ground chipping away at UPS they have to make up revenue somewhere. Amazon sees the writing on the wall, knows it must control it's own future by reducing shipping costs rather than be held hostage by shipping companies.

Lol held hostage? Amazon gets the cheapest rates of anyone. The profit margin on their shipments is non existent. And it'll cost them more to ship their own stuff than the prices we give them.