Amazon is building its own carbon-neutral UPS, Bank of America says

Discussion in 'UPS Discussions' started by ThePackageDeli, Sep 22, 2019.

  1. MECH-lift

    MECH-lift Union Brother

  2. DumbTruckDriver

    DumbTruckDriver Allergic to cardboard.

    Gonna get my application in tomorrow. Not wasting my time on THIS sinking ship.
     
    • Funny Funny x 4
    • Like Like x 2
    • Agree Agree x 1
    • List
  3. oldngray

    oldngray nowhere special

    Amazon hasn't had enough press releases recently. They must have felt they needed a bump in their stock price.
     
  4. 35years

    35years Well-Known Member

    Fed-ex drew the line in the sand.

    Will our current UPS leadership continue to bow to the almighty Amazon for a few years of profits and sink the tightest ship?

    Or will we cut them off before they cut us out?
     
  5. Rack em

    Rack em First to worst!

    We have them by the balls right now! We can charge them FULL price for ALL packages now or dump them right before peak. Imagine how many people would be pissed off when amazon and the post office ruin Christmas. Of course our fearFULL leaders won't take action against amazon until it's too late.
     
    • Agree Agree x 3
    • Winner Winner x 3
    • Like Like x 2
    • Funny Funny x 1
    • List
  6. 35years

    35years Well-Known Member

    Yep
    It is all about the current quarter's numbers.

    Meanwhile they build infrastructure to rival ours, and we facilitate them.

    Reminds me of Lenin's quote...
    “The Capitalists will sell us the rope with which we will hang them.”
     
    • Funny Funny x 3
    • Like Like x 1
    • Agree Agree x 1
    • Winner Winner x 1
    • List
  7. OKLABob

    OKLABob Active Member

    What are the chances they really put us out? I’ve heard rumors for awhile now but never really thought about it much.
     
  8. 35years

    35years Well-Known Member

    All other competitors were hampered by the enormous cost of building the infrastructure (planes, trucks, buildings).

    Amazon has shown it is willing to sustain many years of losses in one section of it's empire in order to grow to be the biggest player in the sector.

    They have the money. Eventually they themselves will be moving the vast majority of what they sell.

    They will then need to move other company's goods to make their distribution network profitable....Business to Businesses delivery.

    Until then, they have an advantage that Fed-ex did not enjoy...they sell the product to be shipped.

    My guess, and only that a guess, is they will move an equal amount of boxes as us by 2030. Then their low labor costs put us under by 2040.
     
    • Agree Agree x 2
    • Like Like x 1
    • List
  9. Package Stick

    Package Stick "Send it."

    I talked to a revenue recovery supervisor in regards to Amazon and incomps (they're not operations, really do f*** all).

    He said we charge them $18 every time an incomp has "extra" handling.
     
  10. Rack em

    Rack em First to worst!

    I agree but would drop those numbers to around 2025 and 2035. They are growing exponentially every single year and no signs of them slowing down or people shopping elsewhere.
     
    • Informative Informative x 1
    • List
  11. 35years

    35years Well-Known Member

    Amazon is looking forward to cut us out of the online sale and distribution of products equation.

    UPS could cut Amazon out by no longer delivering Amazon's (our competitor) boxes...say starting December 1st or whenever our contracts run out.

    We then form a strategic alliance with a Chinese company, say Alibaba with a written non-compete clause regarding delivery.

    By doing so the same Chinese crap people buy from Amazon is delivered by UPS, and we have cut out the Middleman (Amazon).

    But who am I but a lowly driver who has seen our once forward looking company transformed into a bureaucracy.
     
    • Like Like x 3
    • Winner Winner x 2
    • List
  12. Boywondr

    Boywondr Newbie Doo

    We love logistics.
     
  13. zubenelgenubi

    zubenelgenubi Well-Known Member

    Does anyone here know the terms of our contract with Amazon? We may not be able to drop them, or jack our rates. The UPS lawyers are probably only smart enough to outmaneuver truck drivers when it comes to negotiating contracts, not other high-priced corporate lawyers.
     
  14. cosis

    cosis Member

    UPS is going to suck the Amazon teet until they are delivering 2% of Amazon's packages like Fed-ex was..
     
  15. DumbTruckDriver

    DumbTruckDriver Allergic to cardboard.

    I understand that Amazon has virtually limitless amounts of money, but has anyone thought out what it would take for them to deliver everywhere? It’s one thing to be in all the major metro areas, but there are a ton of smaller buildings all across the country. Dropping a delivery center in every small to medium sized city will take a long time.
     
  16. Rack em

    Rack em First to worst!

    Once amazon establishes themselves as a true competitor in the delivery game, we will be lucky to get 2%.
     
  17. 35years

    35years Well-Known Member

    IN the US Amazon listed 75 centers in 2017. 160 were listed by 2018. Doubling
    each year... We have 1800 operating facilities.

    Ups....
    Delivery fleet About 123,000 package cars, vans, tractors, motorcycles,
    Amazon just ordered 100,000.

    Not to mention the tens of tousands of Amazon flex drivers who deliver using their own vehicles.
     
    Last edited: Sep 22, 2019
  18. DumbTruckDriver

    DumbTruckDriver Allergic to cardboard.

    And where will those new 100,000 vehicles be delivering out of, the parking lot of the local dead mall? I work in a town of about 200,000 people that is rapidly growing, and our center reaches parts of ten surrounding counties. Not seeing any signs yet of Amazon showing up, and I don’t expect to any time soon. There’s a lot of towns just like this all across the country.
     
  19. 35years

    35years Well-Known Member

    Expect to be seeing them in the next 4 years.
    I never saw an Amazon truck until this year.
    I see them every day now. I deliver to a town of 30,000. They even deliver to towns with less than 200 people and the surrounding ranches.

    We are talking exponential growth...doubling their in house distribution every 3 years or so puts their distribution facilities at 1800 (Ups's current number of facilities) in 9 years.

    As of November of 2018...
    One of these ( Amazon) fulfillment centers is likely very close.
    According to Cooper Smith, an analyst at L2 Inc., a New York-based business-intelligence firm, Amazon “now has warehouses within 20 miles of half the U.S. population.”
     
    • Like Like x 1
    • Agree Agree x 1
    • List
    Last edited: Sep 22, 2019