The Silent Downfall of United Parcel Service (1907-20??)

SafetyFirst

Well-Known Member
Amazon will figure it out. UPS has gone all in on Amazon while they're continuing to grow their Network. They may not ever have ambitions of delivering all of their own volume, but they'll definitely deliver all of their own stuff in more sense population areas.

Look at the technology UPS is pushing ... Orion (they know doesn't work) navigation. This stuff is mostly garbage but UPS continues to try and force it. It's at the very least not encouraging.
 

Wally

BrownCafe Innovator & King of Puns
Amazon is a platform for businesses of all sizes to sell their products and gain exposure (think eBay). Amazon isn't a direct rival of Companies A, B, or C but instead a helpful partner. Example: Walmart has a store set up on Amazon.

And sure, Amazon now has it's own brand and products that create more competition in the marketplace, but many of the products sold on Amazon.com are listed by individuals and small businesses as an exercise in retail arbitrage.

At the end of the day, if ANY company in the US can reduce its shipping cost they're going to. And Amazon is positioned to be a more valuable partner to many of these companies than UPS is anymore.

Sorry UPS, you're running a high risk of pricing yourself out of an industry that no longer needs to rely on a unionized work force in order to synchronize the world of commerce.

The writing's on the wall.
Amazon -Should UPS Be Worried?

Will Mods merge threads?
 

Underallowed306

Well-Known Member
I’m sure that Amazon will be successful to some degree. They have the capital and a proven model (ours) to emulate. But to give them a pass to the front of the line and say that they will put us out of business is absurd. They are going to have infrastructure problems, growth management issues, labor issues, and governmental interference to an extent they don’t have currently. UPS can maneuver just like Amazon. You’re assuming that UPS will just remain static while Amazon continues to grow. That’s not realistic.
 

Overpaid Union Thug

Well-Known Member
DHL isn't anywhere near as big as amazon has become. I really hope I'm wrong, but I think amazon is too big and popular now.
I think you are right. People that predicted this a few years ago were laughed at for it. I am guilty of that. We didn't think they'd be able to compete unless they had at least one distribution center for everyone one of our hubs. But now they are already delivering much of their own stuff (all of it except irregs in some areas) and they haven't matched us building for building yet.

I've got over 20 years with UPS but unfortunately a big chunk was part-time so it'll be a while before I can retire with a decent pension. I will definitely still be at UPS as Amazon takes over or at least cuts us to a fraction of our size. Like it or not our wages will play, are playing, a part in this. When you've got armies of clueless minions that are more than willing to do the same job for pennies on the dollar what can you do? Plus, UPS just doesn't seem to think long term and has more or less set Amazon up to take UPS down. UPS will still be around for a long time. Maybe as long as people need stuff shipped. But I think it'll end up being reduced to second or third fiddle scraping by with shipping to and from the few big box stores that are left and hadn't been cut out from under us by "contractor" model slave wage paying carriers. Eventually the streets will be filled with Amazon vans and Uhual moving trucks driven by FedEx Ground.

If only people weren't lazy and would actually shop around and price match so they can realize just how overrated Amazon is.
 

Overpaid Union Thug

Well-Known Member
I’m sure that Amazon will be successful to some degree. They have the capital and a proven model (ours) to emulate. But to give them a pass to the front of the line and say that they will put us out of business is absurd. They are going to have infrastructure problems, growth management issues, labor issues, and governmental interference to an extent they don’t have currently. UPS can maneuver just like Amazon. You’re assuming that UPS will just remain static while Amazon continues to grow. That’s not realistic.


I'm not so sure UPS is in any way ahead of Amazon in infrastructure planing and implementation. In my state alone UPS has built a new hub, drastically expanded several others. As well as some extended centers but they were all too small to handle the following years peak the moment the projects were finished. UPS slogan should be "We Set Ourselves Up For Failure."

I have often wondered if the govt would attempt to step in and slow the rapid growth of Amazon though. But I think that would be a long way off.
 

zubenelgenubi

I'm a star
I know. We've got a ways to go before we really need to be worried. But, at the very least we are experiencing a permanent decrease in volume in the short term, which MUST mean a layoff is coming for those unfortunate few at the bottom. You can't have a permanent reduction in volume AND keep the same number of people working. UPS don't fly like that.

If you truly believe that UPS will be unable to compete with Amazon, what do you think UPS should do to keep up? Are you willing to take a huge cut in compensation? If so, why not just quit and go work for Amazon, since, according to you, they are the future? You won't because it only makes sense to continue to make as much money as you can as long as you can.

When we break down what you are saying, all we are left with is "the future is uncertain, be prepared". Thanks for that, the two people on this forum who weren't already painfully aware of that are grateful for the truistic heads up.
 

rod

Retired 22 years
Railway Express was once considered too big to fail at one time. Every town of any size in the USA had a Railway Express office. We had one here and our population at that time was probably only 8,000. Don't think for a second that UPS can't fail too.
 

Days

Well-Known Member
Can’t worry about the future if it hasn’t happened yet.

I agree that Amazon would crush UPS if it ever got the chance because Amazon has an unfair advantage over everyone else and the government does nothing about it except give them more tax breaks.
 

ManInBrown

Well-Known Member
Amazon is a platform for businesses of all sizes to sell their products and gain exposure (think eBay). Amazon isn't a direct rival of Companies A, B, or C but instead a helpful partner. Example: Walmart has a store set up on Amazon.

And sure, Amazon now has it's own brand and products that create more competition in the marketplace, but many of the products sold on Amazon.com are listed by individuals and small businesses as an exercise in retail arbitrage.

At the end of the day, if ANY company in the US can reduce its shipping cost they're going to. And Amazon is positioned to be a more valuable partner to many of these companies than UPS is anymore.

Sorry UPS, you're running a high risk of pricing yourself out of an industry that no longer needs to rely on a unionized work force in order to synchronize the world of commerce.

The writing's on the wall.
Kewl. Im detailing my Lexus RC350. As soon as im done ill jump back on here. You can tell me more
 

MrBates

Well-Known Member
Amazon is a platform for businesses of all sizes to sell their products and gain exposure (think eBay). Amazon isn't a direct rival of Companies A, B, or C but instead a helpful partner. Example: Walmart has a store set up on Amazon.

And sure, Amazon now has it's own brand and products that create more competition in the marketplace, but many of the products sold on Amazon.com are listed by individuals and small businesses as an exercise in retail arbitrage.

At the end of the day, if ANY company in the US can reduce its shipping cost they're going to. And Amazon is positioned to be a more valuable partner to many of these companies than UPS is anymore.

Sorry UPS, you're running a high risk of pricing yourself out of an industry that no longer needs to rely on a unionized work force in order to synchronize the world of commerce.

The writing's on the wall.

Amazon will always need the heavy hitters (UPS) to deliver the stuff that doesn't fit in those vans.
 

oldngray

nowhere special
Amazon can deliver some of their own stuff but no way can they handle all of it. All they will do is skim off some of the cream in congested areas and close to their distribution centers. Will it hurt UPS and FedEx profits? Probably so. Far cry from putting them out of business.
 
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