Why in the world doesn’t UPS take a cue from FEDEX

ManInBrown

Well-Known Member
And tell Amazon to hit the bricks? Deliver your own crap. Perfect timing. Fedex express just announced they did not renew their contract with Amazon. Put Amazon out of business like we should have done years ago. They will drown in their own vomit without UPS and Fedex. There little independent contractors delivering all their crap? Lol.
 

Superteeth2478

Well-Known Member
And tell Amazon to hit the bricks? Deliver your own crap. Perfect timing. Fedex express just announced they did not renew their contract with Amazon. Put Amazon out of business like we should have done years ago. They will drown in their own vomit without UPS and Fedex. There little independent contractors delivering all their crap? Lol.
I bet the UPS Board of Directors has shares of Amazon. They want UPS to fail.
 

Richard Harrow

Deplorable.
UPS won't have to follow suit unless their drivers start filing 9.5 grievances en masse.

Since 8 in 10 drivers at this company lack the testicular fortitude to file even after the new contract language made it easier, the status quo will remain.
 

The Driver

I drive.
It's possible that UPS expects Amazon volume to grow at a pace that will make it unlikely that the company will be able to ever deliver all of its own volume by itself, thus always needing a 3rd party carrier. UPS thinks it can walk that tight rope forever with Amazon? From a business point of view maybe they just don't want to attempt to poison the well yet.
 

Brownslave688

You want a toe? I can get you a toe.

barnyard

KTM rider
It's possible that UPS expects Amazon volume to grow at a pace that will make it unlikely that the company will be able to ever deliver all of its own volume by itself, thus always needing a 3rd party carrier.

Already seeing this.

My area is just outside of a large metro. Amazon has tried to pull their packages but cannot get it done. They pulled their volume from our building 3 years ago, it came back 2 months later and has been growing ever since.
 

OrionIsDaddy

Well-Known Member
Amazon makes up nearly 20% of business to customer volume through UPS while it only accounted for 1.4% of FedEx Business to customer volume....a lot easier for FedEx to drop them.
 

BlackCat

Well-Known Member
Amazon makes up nearly 20% of business to customer volume through UPS while it only accounted for 1.4% of FedEx Business to customer volume....a lot easier for FedEx to drop them.
Who cares if it is 20% or 1.4%. If the deliveries are not profitable, it doesn't matter how much volume you have.
 

zubenelgenubi

Living for Lunch Break
It's possible that UPS expects Amazon volume to grow at a pace that will make it unlikely that the company will be able to ever deliver all of its own volume by itself, thus always needing a 3rd party carrier. UPS thinks it can walk that tight rope forever with Amazon? From a business point of view maybe they just don't want to attempt to poison the well yet.

Agree, the higher the stop density the better the chance of profiting. It sounds like express is having issues with making money in extended areas, and they can't send those packages through fedex ground. If we're in the area already, we win. Seems like this could prove to be a pretty big flaw in FedEx's business model.

I'm in town, but my delivery area has shrunk significantly. We are running around 10% more routes on a regular basis, and the center manager is requesting more drivers. This time of year we usually have several of the lowest drivers laid off for extended periods. Whether UPS is making any money off it, I guess we'll see when the Q2 numbers are posted.
 

Staydryitsraining

Well-Known Member
Fed ex Express was looking to sell the business. The article I read about it was late last year. Also, that company they out bid ups to buy isnt returning a profit either. None the less David abney should step down he clearly isnt competent enough to run this business.
 

Eat Sleep Fish

Jig Master
I don’t think people are actually reading the article.

FedEx will no longer provide express shipping for Amazon in the US

It says the real FedEx (not Ground) will stop delivering Amazon pkgs. That volume is a drop in the bucket just like our express volume for Amazon. FedEx Ground will continue accepting ground volume from Amazon.
How do you think that ground gets to Fedex? This is big news as Fedex's air division is much larger than ours. And I mean much larger.
 

barnyard

KTM rider
We also do not know what UPS is charging Amazon. Bezos speaks to shipping at every board meeting and how he is working at driving costs down. Plus, as we get more of that resi volume, our actual cost to deliver it has to go down. My route typically has 150ish stops. That is generally an 8.5-9 hour day. I have had a pile of days with 180 stops and done that in a relatively easy 9 hour day. Yesterday, I had 150 and barely had 8 hours. I had several times when I parked and walked off 4 stops. I am also seeing many more resi stops with more than 2 pieces per stop. That also boosts efficiency.

It would be interesting to know how many pieces it takes per resi stop to make it profitable.

edited to add... On my route, I start the day with businesses. Even after going to CIR, I rarely have more than 28 stops done by the end of my 2nd on road hour. My resi neighborhoods are 20-35 stops/hour. Every day, I have at least 1 30 stop hour, sometimes 2.
 
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badpal

Well-Known Member
Will be interesting on how it all plays out, our air feeder driver is bringing back a lot more than 6 months ago. Claims it mostly amazon .
 
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