Uber, Amazon Disrupting The Traditional Delivery Market - UPS Secular Growth Story At Risk

cheryl

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Uber, Amazon Disrupting The Traditional Delivery Market - UPS Secular Growth Story At Risk - Seeking Alpha

Summary
  • The shares of UPS are richly valued, but many argue this rich valuation is indicative of bullish secular trends.
  • We challenge this premonition, arguing that there are multiple headwinds that challenge the secular growth of the UPS business.
  • We believe UberRush and similar gig economy-based delivery systems will steal local B2C market share from UPS.
  • Evidence strongly suggests Amazon is fleshing out its own delivery system, and the company appears to be pursuing multiple different routes to squeeze UPS out of its delivery process.
  • The current valuation does not consider these threats, and this makes UPS a good short candidate.
 
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