Would be a PR nightmare if they did.
Amazon
- Thread starter vantexan
- Start date
Bezos doesn't care. He's a cheater. But he needs us right now. But guaranteed he is already close to figuring out how he can do it without us. We see the little things, these independents like van interviewed with, or roadie, uber, lyft. Amazon lockers, drones. But there is stuff we can't even imagine. Could he buy your company sam? What about other contractors?
For Bezos
So it'll be ok to force Bezos to use FedEx or UPS? What's the criminal term for that? Extortion?
Once again, he'll take the easy in town stuff and leave the scraps for the common carriers to fight over. The only question is hard will they fight over what has historically been the less profitable rural areas? Those RD's will eat you up. at the same time however Bezos might be surprised to discover that in order to get the commons to take what he doesn't want may require him to pay more than what he had in mind. The end result is that he might get that huge ego of his knocked down a couple of begs.
Star B
White Lightening
But those EVIL carriers FedEx and UPS don't want you to get your stuff!!!!!!!!! They don't wanna play fair, waaaah.
Don't underestimate the stupidity of the common consumer.
Fred's Myth
Nonhyphenated American
I think you're looking at it wrong. If the major carriers (UPS, FedEx, USPS) charged Amazon a non or minimally discounted rate immediately, his empire would take a huge hit. Bezos' game plan would be knocked off-center, profits would tumble, taking his stock prices with them. I would call that a preemptive strike, not extortion.
And they'd lose the heavy boxes he'd throw their way. Bacha talks about rural deliveries from a contractor's perspective. Express and UPS are already delivering in the rural areas. The extra freight from Amazon would help pay for their servicing those areas.
I'm trying to figure out why Bezos is considered evil? For all their growth Amazon hasn't been that profitable yet. One of the biggest reasons is shipping costs. He has just as much right to achieve profits for his shareholders as the rest do. Wasn't so long ago that FedEx was shaking up the transportation industry. Think UPS doesn't wish FedEx had never shown up? How many businesses have been put out of business by Wal-Mart? Businesses that survived adapted. FedEx will too, but it may be a more streamlined company before this is over. The world has rapidly changed how it's doing business. Bezos was visionary enough to see online retail is the future. Brick and mortar stores still have their place, but they'll have to offer consumers something that they can't experience shopping online.
No. It's called market capitalism. You think Amazon, Walmart, or any large retailer gets discounts based on deliveries to rural Idaho? That's crazy.
They get discounts because of the volume they do. If a shipper like Amazon realizes that even with the volume discount they could do better cutting out the middle man they'll do exactly what Amazon is doing. If FedEx and UPS try to stop that by charging full fare they'll hasten the process and may even lose the rural business that does help pay for other rural deliveries. Man at one of the companies I'm applying to said Amazon accounts for 12-13% of UPS' business. Probably less for Express but still substantial. They aren't going to risk losing everything by bullying Amazon.
Correct. Is volume in New York City or rural Idaho?
Highly doubtful.
I am just an hourly fedex driver, my take on amazon and bezos may be related to all the heavy ass boxes that i must lug up 5 flights of stairs because someone thinks that quality furniture can be assembled at home with an allen wrench.
With that in consideration, my personal problem with bezos is his deep pockets and tax loopholes which allow him to undercut his competition and put them out of business. It's Walmart on a much bigger scale, except that Walmart wasn't coming after my job. I have always had a problem with walmart, but for some reason they were reigned in when they tried to expand into other things. Amazon gets a green light for everything. They are even going to get the green light from the FAA for drones.
With that in consideration, my personal problem with bezos is his deep pockets and tax loopholes which allow him to undercut his competition and put them out of business. It's Walmart on a much bigger scale, except that Walmart wasn't coming after my job. I have always had a problem with walmart, but for some reason they were reigned in when they tried to expand into other things. Amazon gets a green light for everything. They are even going to get the green light from the FAA for drones.
But we aren't Amazon's competition, we're their partner. And they're determining that the partnership needs reworking. You'll still get those heavy boxes lol. But the vast majority of their pkgs are small and light. Smaller delivery companies with much less overhead can get the job done for less. And FedEx gets it's share of breaks from gov't too. Otherwise it would've been unionized many years ago.
The volume that they can easily do themselves is in the metro areas. If they lose their volume discounts you don't think they can't quickly find other delivery companies willing to deliver for them? And they are a huge chunk of UPS' business. With eventual union negotiations think UPS is looking to possibly lose that business? They'll take whatever Amazon is willing to give them.
Yeah he said Amazon ships around 800,000 pkgs a day through UPS. I can find online where Amazon was 10% of UPS business in 2012. They've grown a bit.
Math. UPS delivers roughly 24 million pieces per day. 10 to 13% would be 2.4 to 2.7 million pieces from amazon per day.
So what happens if Amazon takes the low hanging fruit? The already small profit fades quickly. UPS is buying business? That's a very poor business plan.
In the sense that amazon cannot control their shipping costs directly we are their competition. Shipping costs are bezos biggest "problem". He wants cheaper. The outfit you interviewed for is probably a short term answer to his need. Amazon has more failures than we realize but they are just platforms for better ideas. Amazon has irons in every fire to see what works best and cheapest and they can control.
I pull up to houses and there are pkgs outside the door from amazon from every carrier. I see uber drivers open their trunks and there is a pile of prime boxes in there. One gal walks past me scans a box with her phone drops it outside an apartment door. Her next stop was someone going to the airport. Yesterday amazon driver is at same house I am at with 2 tiny boxes. I have those stupid adjustable dumbells that weigh more than amazon is paying for. He jumps out drops and runs. I have to break out the old hand truck and take extra time lugging it over and find a spot out of the rain.
Not all of my amazon boxes are tiny and light. They are bulky crappie things that I trip over all day. Tables, dog food, fishing poles, karaoke machines etc. The ground guy probably gets even crappier stuff. On Monday I have none, on Friday my cargo area has 100 smirks. They know what they are doing, the logistics of how they do it are definitely beyond my pay grade. Shipping is their last spoke in the wheel.
So, again, just my opinion. Bottom line, buy amazon, they are predicting 2000.00 a share in the near future
I pull up to houses and there are pkgs outside the door from amazon from every carrier. I see uber drivers open their trunks and there is a pile of prime boxes in there. One gal walks past me scans a box with her phone drops it outside an apartment door. Her next stop was someone going to the airport. Yesterday amazon driver is at same house I am at with 2 tiny boxes. I have those stupid adjustable dumbells that weigh more than amazon is paying for. He jumps out drops and runs. I have to break out the old hand truck and take extra time lugging it over and find a spot out of the rain.
Not all of my amazon boxes are tiny and light. They are bulky crappie things that I trip over all day. Tables, dog food, fishing poles, karaoke machines etc. The ground guy probably gets even crappier stuff. On Monday I have none, on Friday my cargo area has 100 smirks. They know what they are doing, the logistics of how they do it are definitely beyond my pay grade. Shipping is their last spoke in the wheel.
So, again, just my opinion. Bottom line, buy amazon, they are predicting 2000.00 a share in the near future
The company I'm hoping to get hired by is only going to do small packages. The Ground guys look at it from their perspective but Amazon has to pay enough for their two biggest shippers, FedEx and UPS, to pay a lot of people $25-$35hr plus benefits plus a huge amount on trucks, planes, and more and still make a profit. By paying small outfits like the one I'm considering they come out ahead. The Ground guys are only thinking about their low cost employees and trucks, there's a lot more being paid for by Amazon and other shippers to make it all happen. Amazon by the way makes very few products themselves, they're a conduit for many large businesses to take the final leg of shipping off their hands. So what you're seeing is Amazon making it possible for many businesses to be more profitable by holding down costs. That's why they have the clout they do.
Possibly 800,000 stops a day with multiple pieces at some?
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