Apparently Express Hires Unprofessional Drivers

Lordtekk

Well-Known Member
Which begs the question, has UPS dropped prices to match Ground? Not from what I've heard. Your statement may have been true at one time, but if FedEx Ground now has the ability to offer similar service for considerably less, do you think the big volume shippers looking to save money will stay loyal to UPS? And if UPS loses enough of that business it will severely impact their ability to provide high pay and great benefits. FedEx Express slowed pay progression and cut benefits to increase profits. UPS will eventually have to do the same just to have profits. Assuming of course there won't be a labor friendly federal gov't with a spine that'll end FedEx Ground's advantage. That probably won't ever happen for one simple reason. It's not just FedEx lobbying for exemptions, etc. Shipping goods is a huge part of the economy and business leaders know what FedEx Ground means to their bottom line. When a Democrat administration and Congress failed to help Express employees it wasn't just Fred S throwing money around but the whole business community. We can't fight the inevitable, and neither can UPS. UPS is the last vestige of the golden years of package delivery. But the times they are a-changin'....
I hope you are wrong. Because if you are right the the whole industry gets thrown into a quagmire.
 

vantexan

Well-Known Member
Add to this Amazon building regional warehouses and looking to offer same and/or next day delivery using local carriers and strategically located lockers.

Our senior said recently that Amazon and other big shippers are building regional facilities to take advantage of FedEx Ground's prices. Are there regional delivery operations big enough to compete with Ground?
 

UpstateNYUPSer(Ret)

Well-Known Member
Our senior said recently that Amazon and other big shippers are building regional facilities to take advantage of FedEx Ground's prices. Are there regional delivery operations big enough to compete with Ground?

No but they will offer the flexiblity neither Ground or UPS can---like same day delivery.
 

newgirl

Well-Known Member
Same day delivery would have to be extremely localized otherwise the cost would


OnTrac is a California company that used to be called California Overnight. They have expanded their delivery areas to WA, OR, UT, AZ, CO and NV. They do overnight and Amazon is one of their clients. They definitely have some growing pains but they are growing.

Same day delivery is definitely possible for them. Even late pickup and early AM is possible for them since they are regional. Amazon gives them the cash infusion they need while they grow. I just wonder what they pay their drivers.

Amazon is opening distribution centers to capitalize on shorter shipping times, same day deliveries and even looking into their own delivery service. I wouldn't be surprised to find out that they have some money invested in OnTrac.

I have heard (probably on BC) about other shipping companies that are cropping up. The domestic market is going to change real soon.

The market to go after for Ex is international. If you want something to get to Asia or Europe you still need planes.
 
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vantexan

Well-Known Member
Same day delivery would have to be extremely localized otherwise the cost would


OnTrac is a California company that used to be called California Overnight. They have expanded their delivery areas to WA, OR, UT, AZ, CO and NV. They do overnight and Amazon is one of their clients. They definitely have some growing pains but they are growing.

Same day delivery is definitely possible for them. Even late pickup and early AM is possible for them since they are regional. Amazon gives them the cash infusion they need while they grow. I just wonder what they pay their drivers.

Amazon is opening distribution centers to capitalize on shorter shipping times, same day deliveries and even looking into their own delivery service. I wouldn't be surprised to find out that they have some money invested in OnTrac.

I have heard (probably on BC) about other shipping companies that are cropping up. The domestic market is going to change real soon.

The market to go after for Ex is international. If you want something to get to Asia or Europe you still need planes.

But to do same day delivery you'd have to keep it fairly localized. Is there a large enough market for that? I can't see Amazon building a network of distribution centers 50-100 miles apart, would cost billions. Not to mention the need to stock slow movers on the chance someone wanted same day service for that item. How many people are going to pay the cost of delivering an item to them that's located in a warehouse 200 miles away? Even local same day costs would be prohibitive. Even if the driver made minimum wage you'd have to charge enough in shipping to pay his costs plus fuel and make a profit too. If Amazon did offer same day it would have to be only in the biggest cities. Might be a reason FedEx is developing Cheetah over at Office.
 

newgirl

Well-Known Member
According to their CFO, same-day is not feasible for every market so it doesn't seem to be the holy grail for them--but he doesn't deny they aren't looking into it.

But, they are trying to reduce their shipping costs and the transit times. I pay nothing as a Prime member for shipping on Amazon for some things and i get Saturday delivery at no extra charge. That's crazy. They want to get you your package the next day, hoping your need for instant gratification will keep you buying stuff from them. (Oh, the irony that is--isn't Fedex the reason everyone wants it right now!?)

I don't know how (or if I can) post links, but Googling amazon, same day, 3pl, and distribution centers has been very informative. My BIL is in cargo/freight/cartage and he was telling us (me and DH) that things are going to change. Obviously Fedex is trying to catch-up. I think they were under the impression that with the demise of DHL and the USPS they would own the world with UPS. But they can't buy Amazon like they buy out all the other competition, heck, Amazon can probably buy Fedex. As Fedex was once the game changer, Google and Amazon are the game changers now.
 

vantexan

Well-Known Member
According to their CFO, same-day is not feasible for every market so it doesn't seem to be the holy grail for them--but he doesn't deny they aren't looking into it.

But, they are trying to reduce their shipping costs and the transit times. I pay nothing as a Prime member for shipping on Amazon for some things and i get Saturday delivery at no extra charge. That's crazy. They want to get you your package the next day, hoping your need for instant gratification will keep you buying stuff from them. (Oh, the irony that is--isn't Fedex the reason everyone wants it right now!?)

I don't know how (or if I can) post links, but Googling amazon, same day, 3pl, and distribution centers has been very informative. My BIL is in cargo/freight/cartage and he was telling us (me and DH) that things are going to change. Obviously Fedex is trying to catch-up. I think they were under the impression that with the demise of DHL and the USPS they would own the world with UPS. But they can't buy Amazon like they buy out all the other competition, heck, Amazon can probably buy Fedex. As Fedex was once the game changer, Google and Amazon are the game changers now.

Things might, but no matter the industry the biggest players always generate resentment. Ever deliver to a Walmart and have one of their employees tell you they are the world's biggest retailer and you'll just have to wait until they get to you? I have at several locations. It might be wishful thinking that FedEx and UPS will become obsolete in at least regional markets. The only way that will happen is building infrastructure. Building infrastructure on a regional basis to just undercut an already cheap FedEx Ground wouldn't return much on their investment. OnTrac is probably growing serving certain specialized segments of the shipping market where they can be competitive. FedEx Ground puts out a small army of delivery people every day, backed by logistical support and a 24/7 movement of freight by truck. Until a company can match that they won't be competitive in small package delivery.
 

DontThrowPackages

Well-Known Member
Is there really a market for same day delivery? Will getting that DVD of " The worlds greatest backyard fights" really make a difference if it comes that day or 3 or 4 days later? To most people, getting free shipping is the way to go. Even if it means having to wait 3 -7 days for it. As long as they come home from a long day of work and see that package laying by the door, they forget how long they waited to receive it.
 

newgirl

Well-Known Member
Is there really a market for same day delivery? Will getting that DVD of " The worlds greatest backyard fights" really make a difference if it comes that day or 3 or 4 days later? To most people, getting free shipping is the way to go. Even if it means having to wait 3 -7 days for it. As long as they come home from a long day of work and see that package laying by the door, they forget how long they waited to receive it.

Amazon might disagree with that. They just announced that their Prime membership has outpaced their super-saver free shipping offer. I don't know if you use Amazon, but the free shipping was good on orders of 25.00 or more. Prime you pay 79.00 a year for but you get free shipping on a lot more. The average person spends 49.00 and change so they automatically get the free shipping, but they choose to pay Amazon $6.58 a month to get their stuff faster. (You also get other things like instant video streaming and the kindle lending library with Prime...I love prime.)

Before Fedex you waited for a pkg and you wondered when it would get there. Then we rolled up and not only did we get it to you overnight we told you what time it would get there and who signed for it when it did get there. No one thought that would catch on, either. Most people didn't think consumers wanted stuff overnight, either. Check out Shutl.

Also, I just read that for the first time Amazon has been able to make money with their shipping policy.

I am a package jockey like most of the rest of the people here. I don't know what's going to happen. I would be rich if I had thought to capitalize on the freight I watched roll down the belt. Apple, Dell, HP, now Amazon--too much too little too late. No, we won't go under--but there will be change, has to be.
 
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newgirl

Well-Known Member
Things might, but no matter the industry the biggest players always generate resentment. Ever deliver to a Walmart and have one of their employees tell you they are the world's biggest retailer and you'll just have to wait until they get to you? I have at several locations. It might be wishful thinking that FedEx and UPS will become obsolete in at least regional markets. The only way that will happen is building infrastructure. Building infrastructure on a regional basis to just undercut an already cheap FedEx Ground wouldn't return much on their investment. OnTrac is probably growing serving certain specialized segments of the shipping market where they can be competitive. FedEx Ground puts out a small army of delivery people every day, backed by logistical support and a 24/7 movement of freight by truck. Until a company can match that they won't be competitive in small package delivery.

It's not to undercut. They will have the ability to choose who is the best (cheapest) shipper for the shipment. They even bought a robotic picker thingy company (Kiva) to make it even more efficient. If Fedex ground is the cheapest way to get it there that's what they choose. Why do you think your Amazon pkgs are so haphazard. Unlike some of our large shippers you can't count on having Amazon on any given day.

They have given up the state sales tax fight and decided to go another route. A lot of people stopped buying from them in certain states (like Texas) because of this. But they have been educated at the Fred S School of Business--change is good.

So, Amazon isn't the only player in the game, but if they are successful then others will follow suit.

I had more but I accidentally deleted it ---
 

DS

Fenderbender
This thread is cool.It morphed from one guy nosing in to a dock,to
how well ground is doing in the big scheme of things.
Fedex ground scares me a upser.I asked a former shipper
(school supplies) how the service was,he said they do a good job.
I also think the fact that upsers and fedexers can exchange ideas in
the same thread in a positive way is awesome.
 

newgirl

Well-Known Member
I'm confused, everyone pays $79 a year for prime except you?

I pay 6.58 a month to be a Prime member. Prime is not just about shipping. I get the Kindle library, instant video streaming (with some free movies) and the shipping thing. So, as a prime member shipping is free on purchases that are Prime eligible. Semantics, maybe.
 

vantexan

Well-Known Member
It's not to undercut. They will have the ability to choose who is the best (cheapest) shipper for the shipment. They even bought a robotic picker thingy company (Kiva) to make it even more efficient. If Fedex ground is the cheapest way to get it there that's what they choose. Why do you think your Amazon pkgs are so haphazard. Unlike some of our large shippers you can't count on having Amazon on any given day.

They have given up the state sales tax fight and decided to go another route. A lot of people stopped buying from them in certain states (like Texas) because of this. But they have been educated at the Fred S School of Business--change is good.

So, Amazon isn't the only player in the game, but if they are successful then others will follow suit.

I had more but I accidentally deleted it ---

Speaking of semantics I mean by undercutting that they'll offer service at a lower cost than Ground. Seems unlikely, and if they can't offer the reliability of Ground at a lower price then it's unlikely they'll take marketshare. I took from your posts that both UPS and Ground are going to be, or already are, shocked that someone is beating them at their game. I doubt that they are just going to sit by and let an upstart run them out of business. Just another reason that FedEx has developed Ground with low overall costs, to be competitive against not only UPS but also any new challengers. I'm not saying this with admiration, just don't buy the idea that any company without Ground's infrastructure can duplicate or even surpass Ground.
 

UpstateNYUPSer(Ret)

Well-Known Member
...just don't buy the idea that any company without Ground's infrastructure can duplicate or even surpass Ground.

Suppose Amazon builds a warehouse in Dallas, TX., and contracts with a local carrier to deliver exclusively within the Dallas metro area. You would not need a feeder network or infrastructure to accomplish this.
 

bbsam

Moderator
Staff member
Suppose Amazon builds a warehouse in Dallas, TX., and contracts with a local carrier to deliver exclusively within the Dallas metro area. You would not need a feeder network or infrastructure to accomplish this.

So they would want something of a cross between Ground, HD, and Custom Critical. So the structure is in place. Just need competitive pricing.
 
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