Should UPS be concerned about Amazon's order of 20,000 vans?

[cheryl]

Should UPS be concerned about Amazon's order of 20,000 vans? - Louisville Business First

Winter is coming, logistics world.

Last week brought the news that Amazon.com Inc. (Nasdaq: AMZN) had ordered 20,000 delivery vans from Mercedes-Benz. CNN reports that this deal is a big leap from the Seattle-based e-commerce company's first order of 5,000 vans. Amazon will lease these to third-party partners, who will operate them for last-mile delivery — basically, getting packages from a shipping hub to your house.

This is yet another step in Amazon's plans to build its own delivery service, and it's worth watching to see how it will affect United Parcel Service Inc. (NYSE: UPS). Amazon also is allowing allow people to use their personal vehicles for delivery in some cities.

 

[olroadbeech]

Just like any successful company. Looking for ways to cut out the middle man and costs.

 

[old levi's]

it will fail miserably

 

[bbsam]

it will fail miserably

Just like RPS

 

[1989]

it will fail miserably

No it won’t.

 

[silenze]

How many christmas trees fit in a sprinter?

 

[Old Man Jingles]

How many Christmas trees fit in a sprinter?

The same number that will fit in a P-700.

 

[Returntosender]

UPS's $7 Billion-a-Year Spending Spree Reaches a Moment of Truth

“They’re playing catch-up to a degree to FedEx in the automation game,’’ said Rick Paterson, an analyst at Loop Capital. UPS’s capital spending was between $2 billion and $3 billion a year from 2013 to 2015. FedEx, which began its short-distance delivery service a couple of decades ago, spent an average of $5.1 billion over the past three years.

Beyond FedEx, UPS also faces a challenge from the U.S. Postal Service, which runs unprofitably. Meanwhile, Amazon.com Inc., which had an operating margin of 2.3 percent last year, is creating its own delivery service and has ordered 20,000 vans to help independent contractors to build that network. Amazon is a big UPS customer.

FedEx relies largely on contract drivers who make about $20 an hour, usually with few benefits. Amazon is following that model. UPS’s drivers belong to the Teamsters union and eventually could make more than $40 an hour plus health and retirement benefits under a five-year contract that is up for vote


UPS's $7 Billion-a-Year Spending Spree Reaches a Moment of Truth

 

[Indecisi0n]

Did we even get Amazon back yet?

 

[RPSman]

RPS didn't fail. It achieved 50 state coverage in 11 years. Also Fed Ex did not begin a ground delivery service, 20 years ago; they bought Caliber Systems (Roadway Services, less Roadway Express & Roadway Global Air) after the UPS strike of 1997. I was a P & D contractor then for RPS, Caliber merged with Fed Ex and made FDX. RPS was renamed Fed Ex Ground in the fall of 1999, after I left in the spring of 1999.

 

[bbsam]

RPS didn't fail. It achieved 50 state coverage in 11 years. Also Fed Ex did not begin a ground delivery service, 20 years ago; they bought Caliber Systems (Roadway Services, less Roadway Express & Roadway Global Air) after the UPS strike of 1997. I was a P & D contractor then for RPS, Caliber merged with Fed Ex and made FDX. RPS was renamed Fed Ex Ground in the fall of 1999, after I left in the spring of 1999.

Sounds like failure to me.

 

[RPSman]

Sounds like failure to me.

Have you ever considered the possibility that had there been no 1997 UPS strike, that RPS would have merged with Airborne Express instead? The only thing holding that back was the fact that AE couriers in bigger markets in the East USA were Teamsters, unlike the AE cartage contractor I worked for in western MO after leaving RPS. AE couriers used to pick up RPS paperwork at my terminal in rural MO; they discussed having us deliver to rural towns that they did not service, but we did. You must be Machiavelli's brother.

 

[tino1]

Of course we should that’s part of the problem since Amazon’s inception our leaders always down played them ..THEY ARE A THREAT

 

[tino1]

RPS was the start of FDX ground it was not a failure ...