Amazon's Delivery Dream Is a Nightmare for FedEx and UPS

[cheryl]

Amazon's Delivery Dream Is a Nightmare for FedEx and UPS - Bloomberg Quint

Amazon's ambition has been in plain sight for years. The company has built its own network of merchandise warehouses and package sorting centers. It enlisted its own airplanes and truck trailers to transport cargo. It registered to move freight across oceans, and in dozens of cities it tapped couriers to deliver packages directly to shoppers' doors.

Brick by brick, Amazon has been building itself into a package delivery company to satisfy not only the voracious demands of Amazon shoppers but also anyone else who wanted to move merchandise from one place to another.

None of this has been a secret. Even a hush-hush company like Amazon.com Inc. can't keep jet planes under wraps. But Amazon and its delivery partners such as FedEx have had plausible deniability about what's been happening. When Amazon executives are asked whether they're trying to become another FedEx or UPS, they say those Amazon trucks, warehouses, airplanes and delivery drivers are intended to supplement existing shipping providers when needed and improve service for Amazon shoppers.

This explanation wasn't entirely believable, of course, and Amazon can no longer deny it. Amazon is coming for you, FedEx and UPS. Maybe not today or tomorrow. But soon.

 

[Jkloc420]

amazon still gots one problem, they dont want to deliver rural areas

 

[upschuck]

Even a hush-hush company like Amazon.com Inc. can't keep jet planes under wraps.

They announce it from the rooftops, what do you mean, a hush-hush company. Lol

 

[OrioN]

amazon still gots one problem, they dont want to deliver rural areas

Not true now... I see 2 Ford transit cargo vans and a few Amazonian PVDs in my rural area. We're both busy rushing along to the next house to stop n talk about pay. (I already know about the flex part of the operations, but not the "same day service" cargo vans)

If I do find out they are better compensated & they're usually done by nightfall, vs me out there until 2300, I may become an Amazonian

 

[TearsInRain]

the problem is amazon has a poor ability to process parcels that don’t belong to it

if they want to be a ty walmart that delivers, okay, but the middle market is where all the profit is, and the infrastructure to process that isn’t as simple as the infrastructure to move china made junk

 

[MAKAVELI]

the problem is amazon has a poor ability to process parcels that don’t belong to it

if they want to be a ty walmart that delivers, okay, but the middle market is where all the profit is, and the infrastructure to process that isn’t as simple as the infrastructure to move china made junk

Are you not familiar with the marketplace? They process a lot of parcels that aren't theirs already.

 

[OrioN]

They're advancing at a phenomenal rate vs UPS or FedEx... also, they're pedaling "made in China" stuff that I can find on EBay for up to 80% less in prices. The only difference between E vs. A is transit time.

Shipping container of EBay sellers from China to California, then USPS quickly moves it along to the final destination at a decent pace.

For those instant gratification millennials that wants their stuff same day, they go with the big A

Chewy, for example can ship the pet stuff roughly 2 business days due to FedEx relatively fast shipping network. Some gets to my terminal overnight!

Wal-Mart doing the same free 2 day ground shipping system due to both our fairly fast networks

edit, dang makaveli, u off on Monday too?

 

[rod]

The writing is on the wall. A few years from now FedEx and UPS both will be history if they don't take drastic action NOW. Neither company is so big it could "never go under".

 

[Nike]

Amazon produces a tremendous amount of revenue but so far little profit, don't be so sure it can't all fall apart.

 

[OrioN]

If us dumb truck drivers can foresee wuts coming, the higher ups better git on it...

I'm also not gonna be loyal to my subcontractor if an Amazonian subcontractor wants to pay me more for the same job

 

[Ghost in the Darkness]

Like I said before, have a little talk with fedex to cut amazon off at the knees around Thanksgiving and leave them for dead. Lets see usps bail out that mess.

 

[olroadbeech]

this was inevitable.

no one likes to be at the end of a puppet string.

 

[Indecisi0n]

Why don't we just merge with FedEx to over take Amazon. Now what would our new name be? Hmmmm

 

[ZackBrownPackageCarBand]

Why don't we just merge with FedEx to over take Amazon. Now what would our new name be? Hmmmm

Ups + FedEx merge and then buy out DHL who have a big presence in Europe still. I would settle on a name like Global Logistics Company or Global Logistics Service.

 

[Catatonic]

Why don't we just merge with FedEx to over take Amazon. Now what would our new name be? Hmmmm

Anti-trust laws

 

[DoPushUPS]

Why don't we just merge with FedEx to over take Amazon. Now what would our new name be? Hmmmm

UPSex