Amazon says "ADIOS" to Express?

59 Dano

I just want to make friends!
Where I was going is that FedEx Didn't feel the increased volume and strain on the network was worth it just to "have" Amazon.

They aren't letting the contract lapse because the volume "strained" the network. Amazon wanted to keep deeply discounted shipping rates but without the volume that justify such prices. For the right price, Express would have renewed that contract so fast it would make your head spin.
 

Fred's Myth

Nonhyphenated American
Take the FedEx (and UPS) training wheels off the Amazon bicycle and see how fast they crash.
Amazon’s MO isn’t to enter a market and find their niche. It’s to dominate, and destroy the competition. Yet, you believe we should be satisfied with their crumbs.
 

59 Dano

I just want to make friends!
Take the FedEx (and UPS) training wheels off the Amazon bicycle and see how fast they crash.
Amazon’s MO isn’t to enter a market and find their niche. It’s to dominate, and destroy the competition. Yet, you believe we should be satisfied with their crumbs.

Nope. I said that Express will enter into a contract with them if the price is right. In this case, it's for crumbs. Alrighty then, pay through the nose and we'll take those crumbs. Amazon doesn't want to do that. Alrighty then, it's been great doing business with ya! Have fun delivering Amazon boxes!
 

TUT

Well-Known Member
This is probably a smart move by Fedex. Since air lift can easily hit capacity, Amazons share now becomes a sales opportunity for Fedex to go pick up new customer business with aggressive pricing for what those customers are accustomed to, which will have a higher margin than Amazon. I wonder how many non-direct Amazon locations (partners) we're piggybacking off Amazons rates?
 

Fred's Myth

Nonhyphenated American
Nope. I said that Express will enter into a contract with them if the price is right. In this case, it's for crumbs. Alrighty then, pay through the nose and we'll take those crumbs. Amazon doesn't want to do that. Alrighty then, it's been great doing business with ya! Have fun delivering Amazon boxes!
A package that you don't make a lot of money on is preferable to no package.

What I was addressing was the specific idea that FedEx should have stopped servicing Amazon when they announced their intentions to compete. You don't cut off a profitable revenue stream simply because it comes from a competitor, especially when they aren't a threat.

It's not a choice between a high margin profit and a low margin profit -- we can do both and make money on both.
Sounds like you were advocating accepting crumbs, but maybe that's just me.
 

vantexan

Well-Known Member
Guess it's a moot point now, but when I delivered Amazon in numerous rural areas we were already delivering other pkgs in those areas so why not deliver Amazon too? The extra revenue would lessen the loss such routes incur anyways. And since on many rural routes taking away Amazon would make it difficult to get a full 40, if not 35, there are probably numerous couriers who are going to miss Amazon very much.
 

59 Dano

I just want to make friends!
Sounds like you were advocating accepting crumbs, but maybe that's just me.

It's just you. Someone said that we should have stopped taking Amazon freight the moment they announced they wanted to enter the package delivery business and I disagreed.
 

Operational needs

Virescit Vulnere Virtus
Guess it's a moot point now, but when I delivered Amazon in numerous rural areas we were already delivering other pkgs in those areas so why not deliver Amazon too? The extra revenue would lessen the loss such routes incur anyways. And since on many rural routes taking away Amazon would make it difficult to get a full 40, if not 35, there are probably numerous couriers who are going to miss Amazon very much.
My rural route hasn’t changed much with losing Amazon. Monday’s are a little lighter but the rest of the week is about the same.
 

Star B

White Lightening
Guess it's a moot point now, but when I delivered Amazon in numerous rural areas we were already delivering other pkgs in those areas so why not deliver Amazon too? The extra revenue would lessen the loss such routes incur anyways. And since on many rural routes taking away Amazon would make it difficult to get a full 40, if not 35, there are probably numerous couriers who are going to miss Amazon very much.

When we had amazon I was running more miles with less stops because the density went down. Caused numerous P1/SO service failures because the route area was so large because it was that rural.. it was tough making 16:30 P1/bizSO/bizES at the end of the route without wasting another 2 hours backtracking for the five stops of amazon you had to bypass to make service... which you couldn't do anyway because you'd have DEX1s by the time you got back to where you started backtracking due to pull time.
 

Cactus

Just telling it like it is
When we had amazon I was running more miles with less stops because the density went down. Caused numerous P1/SO service failures because the route area was so large because it was that rural.. it was tough making 16:30 P1/bizSO/bizES at the end of the route without wasting another 2 hours backtracking for the five stops of amazon you had to bypass to make service... which you couldn't do anyway because you'd have DEX1s by the time you got back to where you started backtracking due to pull time.
That's a manager's problem. Sounds to me like your manager was clueless about outlying areas and gave you too many stops.
 

Star B

White Lightening
That's a manager's problem. Sounds to me like your manager was clueless about outlying areas and gave you too many stops.
Yep. When asked about what to do, they'd look at you like a deer in the headlights and say "Well, you should be able to do it, you did yesterday+10 last week", but they don't understand stop density out there. It is a loosing battle.
 

dezguy

Well-Known Member
Yep. When asked about what to do, they'd look at you like a deer in the headlights and say "Well, you should be able to do it, you did yesterday+10 last week", but they don't understand stop density out there. It is a loosing battle.
Stop density doesn't exist on a printed report or computer monitor.
 

Cactus

Just telling it like it is
Yep. When asked about what to do, they'd look at you like a deer in the headlights and say "Well, you should be able to do it, you did yesterday+10 last week", but they don't understand stop density out there. It is a loosing battle.
Sounds like the management staff I used to work for.

Their idea of help is empty moral support statements coined by Memphis.

What a bunch of assbags.
 

Fixxxer

Well-Known Member
“Amazon's air-cargo network, for instance, launched in 2015. The fleet will expand to 70 planes by 2021.”

That’s cute
 
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