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

DumbTruckDriver

Allergic to cardboard.
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.”
Damn.
 

KoennenTiger

Well-Known Member
Amazon drivers are everywhere here as well. Vans with prime on the side, white vans with street clothed morons making illegal u turns after they pull into a one way street the wrong way, and women in their :censored2:ty old Fords with Amazon boxes stacked all over their cars and dash (so safe).

And I'm still running peak volume every day delivering more and more Amazon.

Perhaps the day will come when we have to pick up our union arms and unionize Amazon. The time to break bezos
 

El Correcto

god is dead
I read amazon is responsible for like 10% of ups revenue. That’s a lot of new guys losing their job if we just dropped them all together.
 

35years

Gravy route
A Dozen or so Companies Amazon Is Slaying This Year
A Dozen or so Companies Amazon Is Slaying This Year
UPS and FedEx
At some point, Amazon's Bezos must have asked himself why he was paying so much money to United Parcel Service (UPS) and FedEx (FDX).


By 2019, the company was delivering about 26% of its own orders directly to customers, according to Wolfe Research. Not incidentally, it also had become a player in the business shipping and logistics business.

KEY TAKEAWAYS
  • Amazon's reach has moved well beyond retail and into other industries that it can disrupt using its lower-price model and its vast warehouse network.
  • Amazon Wardrobe was designed to remove any resistance shoppers had about buying clothing online.
  • Business shipping was a natural fit. Amazon ordered 20,000 vans last year and is directly competing with FedEx and UPS.
Amazon Air now has 50 planes flying out of several regional hubs. It ordered 20,000 vans in 2018. It's testing sidewalk delivery robots to help solve that tricky and expensive "last mile" problem in home delivery.

The company also is working on a delivery service for a business called Shipping with Amazon, or SWA. Amazon will pick up packages directly from other businesses and ship them to customers. Amazon is testing the service in Los Angeles and London, where customers say its rates are about half those of the competition.


The new shipping program will put the company in direct competition for the business of major U.S. shippers UPS and FedEx. The effect on the market could be massive, especially if Amazon is able to offer lower prices than its competitors.
 

35years

Gravy route
I read amazon is responsible for like 10% of ups revenue. That’s a lot of new guys losing their job if we just dropped them all together.
Despite talk of budding rivalry, Amazon and UPS may find they’re stuck with each other - FreightWaves
By some estimates, Amazon accounts for 5 to 8 percent of UPS’ $72 billion in annual revenue...

Analysts like Mehrotra and Kevin Sterling of Seaport Global Securities believe that in the wake of the FedEx move, the time is right for UPS to take a harder pricing line with Amazon. Sterling said UPS has already begun to adopt a firmer stand. However, the gauntlet may not be thrown down until the upcoming peak holiday shipping season. The ordering and shipping cycle will be compressed to just three weeks because Thanksgiving falls on November 28, putting additional pressure on Amazon’s resources, Sterling said. FedEx will not be available to fly Amazon packages, and Amazon’s air network will likely not be fully ramped up to handle the expected parcel avalanche. What’s more, UPS is no longer afraid to walk away from excess peak volume to maintain network fluidity.

The last time the peak season was this short was in 2014, according to Sterling. Then, Amazon deluged UPS with millions of unexpected last-minute parcels. UPS accepted them, and in the process gummed up its network. Hundreds of thousands of holiday packages were delivered late, leaving UPS with a reputational black eye and putting Amazon in full “blame game” mode. It was around that time, Sterling noted, that Amazon began developing its own air network.
 

TTLS1

Well-Known Member
Amazon drivers are everywhere here as well. Vans with prime on the side, white vans with street clothed morons making illegal u turns after they pull into a one way street the wrong way, and women in their :censored2:ty old Fords with Amazon boxes stacked all over their cars and dash (so safe).

And I'm still running peak volume every day delivering more and more Amazon.

Perhaps the day will come when we have to pick up our union arms and unionize Amazon. The time to break bezos

I get that they are becoming a shipping company, but how is profitable to run 5 different vans/drivers in/out of my neighborhood each day? this seems to cost way way more.

A Dozen or so Companies Amazon Is Slaying This Year
A Dozen or so Companies Amazon Is Slaying This Year
UPS and FedEx
At some point, Amazon's Bezos must have asked himself why he was paying so much money to United Parcel Service (UPS) and FedEx (FDX).


By 2019, the company was delivering about 26% of its own orders directly to customers, according to Wolfe Research. Not incidentally, it also had become a player in the business shipping and logistics business.

KEY TAKEAWAYS
  • Amazon's reach has moved well beyond retail and into other industries that it can disrupt using its lower-price model and its vast warehouse network.
  • Amazon Wardrobe was designed to remove any resistance shoppers had about buying clothing online.
  • Business shipping was a natural fit. Amazon ordered 20,000 vans last year and is directly competing with FedEx and UPS.
Amazon Air now has 50 planes flying out of several regional hubs. It ordered 20,000 vans in 2018. It's testing sidewalk delivery robots to help solve that tricky and expensive "last mile" problem in home delivery.

The company also is working on a delivery service for a business called Shipping with Amazon, or SWA. Amazon will pick up packages directly from other businesses and ship them to customers. Amazon is testing the service in Los Angeles and London, where customers say its rates are about half those of the competition.


The new shipping program will put the company in direct competition for the business of major U.S. shippers UPS and FedEx. The effect on the market could be massive, especially if Amazon is able to offer lower prices than its competitors.

I read a similar article, but the quoted shipping rates were actually more than UPS/FDX. not half. if they do half rate, it will never be profitable until all other shipping competitors are gone/eliminated and then they raise the rates. amazon isn't the only ecommerce game in town, there are plenty of companies that will still need brown and purple to move their stuff. direct competitors to amazon are not going to ship their stuff in amazons fancy little vans, they wont want to give them money. I used to like amazon, now I find their website/app useless, it takes forever to find something that im actually looking for and have to sort through all the Chinese crap.
 

ThePackageDeli

Well-Known Member
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.
If we treated Amazon as though they weren't a valuable customer, wouldn't that further justify Amazons intrusion into our B2B?
 

Operational needs

Virescit Vulnere Virtus
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.
They were delivering out of a parking lot across the street from my building for a few months before Christmas last year.
 

Days

Well-Known Member
What are the chances they really put us out? I’ve heard rumors for awhile now but never really thought about it much.

Very likely. As someone else has said, Amazon has nearly an infinite amount of power and money. It’s also run by financial geniuses that know how to work the system better than anyone. Amazon has already beaten every other company face to face because they can offer prices lower than anyone and the government also gives them tax breaks.

Also UPS drivers make enough money that they should be able to have money saved up for a back up plan.
 

Turdferguson

Just a turd
Very likely. As someone else has said, Amazon has nearly an infinite amount of power and money. It’s also run by financial geniuses that know how to work the system better than anyone. Amazon has already beaten every other company face to face because they can offer prices lower than anyone and the government also gives them tax breaks.

Also UPS drivers make enough money that they should be able to have money saved up for a back up plan.

How'd that Amazon fire phone work out for them?
They have had plenty of failures, and what happens when Bezos retires or dies? Does the person who takes his place still say profit be dammed, or do they do like every other CEO and actually worry about their shareholders?
Bezos is a cult of personality can Amazon survive him stepping down or dying?
 

Superteeth2478

Well-Known Member
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.
Well, that depends on how long the contract between UPS and Amazon is. If it happens to expire before peak season hits it's swing that'd be the best idea, but if not UPS would have it's pants sued off for breach of contract.
 

Superteeth2478

Well-Known Member
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.
No d00d. What they're going to do is make UPS go under and then buy up all the facilities that UPS used to own.
 

Superteeth2478

Well-Known Member
I get that they are becoming a shipping company, but how is profitable to run 5 different vans/drivers in/out of my neighborhood each day? this seems to cost way way more.
I don't think Amazon is trying to be as profitable as possible right now. It's probably trying to undercut the competition and make them go under. Then when they're the only game in town and they've used their deep pockets to bribe away the anti-trust lawsuits they can charge whatever they want.
 

oldngray

nowhere special
830064516.jpg
 

Mack37

Well-Known Member
They have a couple fulfillment centers around me and I’m seeing Grey Amazon Volvo tractors pulling Amazon trailers now. Wonder if they’re contractors or company drivers?
 

SafetyFirst

Well-Known Member
Amazon doesn't need to be profitable to grow, they have infinite access to capital.

UPS will not be able to compete with them for that reason as well as the fact that Amazon has multiple streams of income including AWS which is currently their cash cow.

Also Amazon won't be stupid enough to pay someone 200k to check the color of employees socks lol
 
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