Ups could abolish Amazon

M

MenInBrown

Guest
Instead of worrying about amazon delivering their own pkgs. Why not UPS start selling products? We already have the delivery service.
 

brownIEman

Well-Known Member
Where would you get the capital to build that business?
You couldn't build it a piece at a time organically because what do you suppose Amazon and all UPS' other customers would do once UPS started competing directly with their core business?
 

DumbTruckDriver

Allergic to cardboard.
IMG_2337.GIF
 

Box Ox

Well-Known Member
Amazon isn't making much money on delivery.

I think of their consumer product sales as their UPS Ground equivalent, and their web services as their UPS NDA/NDAS/EAM/2DA equivalent. One pay the bills, the other makes the real profit. And that’s what allows them to keep expanding.
 

Jackburton

Gone Fish'n
Service isn’t something you need to keep inventory of or have a place to store it. Service is something you can easily adjust to increase or decrease the levels of if the economy goes down. It’s why UPS did fine during the downturn and other companies went under due to obligations with cash flow vs liabilities.

Amazon would be wise to remember everything is great as long as everything is great. Once another economic downturn hits, let’s see how all these warehouses and last mile delivery trailers do in terms of profitability.
 

1989

Well-Known Member
Service isn’t something you need to keep inventory of or have a place to store it. Service is something you can easily adjust to increase or decrease the levels of if the economy goes down. It’s why UPS did fine during the downturn and other companies went under due to obligations with cash flow vs liabilities.

Amazon would be wise to remember everything is great as long as everything is great. Once another economic downturn hits, let’s see how all these warehouses and last mile delivery trailers do in terms of profitability.
Amazon did survive an internet bubble, and a Great Recession. I'm sure they'll be ok. UPS cut freight service in some states. Besides IPS is all about logistics, right?
 

Jackburton

Gone Fish'n
Amazon did survive an internet bubble, and a Great Recession. I'm sure they'll be ok. UPS cut freight service in some states. Besides IPS is all about logistics, right?
Amazon hadn’t expanded the way it is now. Spreading themselves too far and too thin on very little profit they make now.
 
Top