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Amazon orders 20000 vans
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<blockquote data-quote="dmac1" data-source="post: 3718196" data-attributes="member: 60252"><p>Amazon is of course going to continue to use FEDEX, ground,HD, or express for all of their rural deliveries, so they aren't worried about hard use on gravel or dirt roads, and many, if not most, urban areas are no longer using salt like they did in the past. Add in global warming, and there is less snow to worry about anyway. I think that Amazon has at least as much data on the sprinters as anyone here does, and has calculated the cost/benefit analysis using math no one posting here could explain. </p><p></p><p>Calculus and differential math combined with computers probably told them that they will save 1 penny per delivery based on ALL the factors- cost, mpg, maintenance, durability. </p><p></p><p>And buying 20k vehicles in one order gives them a HUGE cost advantage of ANY fedex ground contractor. With the ever increasing density of Amazon warehouses, even with less capacity, Amazon drivers will be able to easily return to pick up and reload if cubed out. And if they own 20k vans, they will likely hire their own in-house maintenance crews to protect their investment and save even more money. I think Amazon is going to become a huge thorn in Fred S's side, and if they can offer local delivery and pick up service with 3 day nationwide shipping using their existing infrastructure, it will put pressure on fedex to reduce costs. </p><p></p><p>Essentially, Amazon is 'stealing' the original HD concept, but doesn't have to provide the national coverage that HD tried to do. HD rollout was a failure and I think it is because fedex tried to cover too much too fast with too few. Seems like Amazon is planning a slower rollout. But using smaller and more efficient vehicles in urban areas will be faster and cheaper With an order of 20k vehicles with more to come likely, they may have even gotten service contracts with the dealers included.</p><p></p><p>If I was still looking for work, Amazon is clearly the better choice compared to working for Fedex as a ground ISP.</p></blockquote><p></p>
[QUOTE="dmac1, post: 3718196, member: 60252"] Amazon is of course going to continue to use FEDEX, ground,HD, or express for all of their rural deliveries, so they aren't worried about hard use on gravel or dirt roads, and many, if not most, urban areas are no longer using salt like they did in the past. Add in global warming, and there is less snow to worry about anyway. I think that Amazon has at least as much data on the sprinters as anyone here does, and has calculated the cost/benefit analysis using math no one posting here could explain. Calculus and differential math combined with computers probably told them that they will save 1 penny per delivery based on ALL the factors- cost, mpg, maintenance, durability. And buying 20k vehicles in one order gives them a HUGE cost advantage of ANY fedex ground contractor. With the ever increasing density of Amazon warehouses, even with less capacity, Amazon drivers will be able to easily return to pick up and reload if cubed out. And if they own 20k vans, they will likely hire their own in-house maintenance crews to protect their investment and save even more money. I think Amazon is going to become a huge thorn in Fred S's side, and if they can offer local delivery and pick up service with 3 day nationwide shipping using their existing infrastructure, it will put pressure on fedex to reduce costs. Essentially, Amazon is 'stealing' the original HD concept, but doesn't have to provide the national coverage that HD tried to do. HD rollout was a failure and I think it is because fedex tried to cover too much too fast with too few. Seems like Amazon is planning a slower rollout. But using smaller and more efficient vehicles in urban areas will be faster and cheaper With an order of 20k vehicles with more to come likely, they may have even gotten service contracts with the dealers included. If I was still looking for work, Amazon is clearly the better choice compared to working for Fedex as a ground ISP. [/QUOTE]
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