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