Discussion in 'UPS Discussions' started by UPSTeamster Pragmatist, Jan 1, 2020.
Amazon Likely To Offer Consumers a Standalone Alternative to UPS and FedEx - View from the Wing
How Amazon’s Shipping Empire Is Challenging UPS and FedEx
Sadly you need to be a subscriber to read the whole article
Go to this charting service http://bigcharts.marketwatch.com and input UPS compared to FDX and Transportation index(Dow Trans Index) for the last two years. A little less than two years ago (february 2018) Amazon announced its Amazon delivery service. You will see that while Fedex has lost 40% against the Dow Trans Index, UPS has held up quite nicely.
I find it telling that our unionized supposedly overpriced drivers are holding up so well compared to Fred Smiths cheap contractor non-employee model. Guess being a cheap prick doesn't always pay off!
Yeah UPS is spending billions on brand new tractors and modernizing buildings because they are going out of business in 5 years. Stupidest sheet I have ever read. Been around 100 years, and will probably be around 100 more.
22.4 drivers will save us.
Article never stated that UPS or FDX will go out of business. Problem is profit margin compression. I think UPS and the Teamsters are hoping that 22.4 drivers will help save us.
Amazon's profit growth "percentage wise" is coming from cloud services. Companies like Microsoft were a little late to the party. So the competition is just getting started. My guess is Amazon will voluntarily breakup to please shareholders. Let's see what the next recession brings.
In a few years Anazon's logistic chain will be big enough to ship for Target, B&BW, Walmart, Newegg etc. And Amazon can force 3rd party sellers to ship with them and not us. They most definitely have the ability to take a large market share. And Amazon could simply buy BeyondMenu or any of those other meal delivery kit places. The Government should probably step in and put more regulations in place. Amazon is way too powerful. It's not just bad for UPS it's also bad for everyone.
The margins on that side of their business are slim comparatively. Investors will demand bottom line growth going forward. The sum of the parts are greater than the whole, investment speaking.
I believe anti-trust is a real possibility against Amazon. Problem is will it happen before or after they try to screw us over with their operating with no profits (or even losses) for the long haul business model. UPS has to run a profit, if they don't, chapter 11 and contract nullification.
We have more leverage than you think
I agree that we are doing vastly better than FedEx in dealing with Bezos the creepy goblin. I really do hope that you are correct in stating that investors are going to start wanting Amazon to show some profits in their business segments other than cloud services etc. Perhaps there will be a serious market correction soon removing some of Amazons investor attraction. Capital appreciation is all they got. Cut their share price by 50-60% and maybe investors will stop throwing money at Amazon Corp. hand over fist.
FedEx should cut wages, rely more on independent contractors.
I'm not worried.
Amazon delivery driver steals UPS package from home: police
Their version of sales lead
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