UPS and Amazon: Made for each other?

Discussion in 'The Latest UPS Headlines' started by cheryl, Feb 7, 2020.

  1. cheryl

    cheryl I started this. Staff Member

    UPS and Amazon: Made for each other? - Freight Waves

    Wisdom holds that the alliance will collapse as interests diverge. Right now, it’s getting stronger.

    Like most mega-companies, UPS Inc. is loath to publicly discuss customers or its relationships with them. It refuses to answer reporters’ questions about customers. It never mentions them in press releases or other media announcements. But the long-held custom went out the window last week. In announcing its fourth-quarter and full-year results, UPS not only disclosed a customer’s name, but chose perhaps the most visible company on the planet.

    UPS said parcels tendered by Amazon.com Inc. accounted for 11.6% of its 2019 revenue, which works out to about $8.6 billion from a base of $74 billion. In UPS’s 20-plus years as a public company, no single customer has ever made up such a large percentage of its annual revenue.
     
  2. TearsInRain

    TearsInRain IE boogeyman

    Just imagine if we didn’t move amazon volume, there’d be no need for all this 22.4 crap and the HUGE amount of staffing we’ve brought on

    we could buy ourselves 10-15 years of CAPEX catching up if we dumped them
     
  3. olroadbeech

    olroadbeech Happy Verified UPSer

    it's a dangerous percentage. time to sell stock maybe. too many eggs in this basket.
     
  4. Indecisi0n

    Indecisi0n Well-Known Member

    When we lost Amazon at our center we laid off a lot.
     
  5. dudebro

    dudebro Well-Known Member

    But why would you turn down business? Where else is there an 8 billion dollar pile of money to go get?

    It's our jobs to figure out how to only spend 7.5 billion dollars getting it...
     
  6. MyTripisCut

    MyTripisCut Dumpster, INABAG

    If there’s $30 on this side of a highway and $100 on the other side, maybe it’s safer to just grab the money on this side without getting crushed crossing the street.
     
  7. Let's just keep kissing Amazon's ass and pissing off the customers that we actually make a good profit on

    That's a fantastic plan.
     
  8. dudebro

    dudebro Well-Known Member

    If I'm in a position to try to make both of our financial positions better getting the $100 safely, it's malfeasance not to try.

    What we're putting on Amazon is really a change on the customers part - I know the inside of my front door looked like a customer counter last December at one point, and my own family is the one doing the eye rolls when I complain about the impact of it.
     
  9. TearsInRain

    TearsInRain IE boogeyman

    Because it’s the lowest margin work we accept and I believe we may even lose money on it overall
     
  10. How many late air refunds have we given because they overload the air system?
     
  11. MyTripisCut

    MyTripisCut Dumpster, INABAG

    Ten?
     
  12. olroadbeech

    olroadbeech Happy Verified UPSer

    10 year return UPS stock 176%
    10 year return Netflix 3670%
    10 years return Amazon 1195%

    way overdue to sell my UPS stock. it's a dog.