UPS and Amazon: Made for each other?

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.
 

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
 

dudebro

Well-Known Member
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

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...
 

MyTripisCut

Let’s get back
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...
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.
 

dudebro

Well-Known Member
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.

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.
 

TearsInRain

IE boogeyman
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...
Because it’s the lowest margin work we accept and I believe we may even lose money on it overall
 

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.
 
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