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

Discussion in 'UPS Discussions' started by ManInBrown, Jun 7, 2019.

  1. ManInBrown

    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.
     
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  2. Superteeth2478

    Superteeth2478 Active Member

    I bet the UPS Board of Directors has shares of Amazon. They want UPS to fail.
     
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  3. Dritalin

    Dritalin New Member

    Get ready for Sunday delivery!
     
  4. Richard Harrow

    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.
     
  5. KOG72

    KOG72 I’m full of it

    UPS will suck there ass and take all of the volume they give us
     
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  6. The Driver

    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.
     
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  7. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    We should certainly raise rates and see what they do.


    There’s no way the post office is delivering all of this NDA
     
  8. Overpaid Union Thug

    Overpaid Union Thug Well-Known Member

    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.
     
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  9. Brownslave688

    Brownslave688 You want a toe? I can get you a toe.

    Almost all of our amazon volume is NDA saver now.
     
  10. Rick Ross

    Rick Ross I'm into distribution!!

    That and large packages picked up from their 3rd party warehouses. These aren't in Amazon boxes but are sold through the website.
     
  11. barnyard

    barnyard KTM rider Staff Member

    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.
     
  12. Overpaid Union Thug

    Overpaid Union Thug Well-Known Member

    Ours is mostly ground. Unless chosen at checkout, Amazon typically uses express only when the item isn’t located in a distribution center within two days of the customer. Which is becoming rare.
     
  13. OrionIsDaddy

    OrionIsDaddy 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.
     
  14. BlackCat

    BlackCat Active Member

    Who cares if it is 20% or 1.4%. If the deliveries are not profitable, it doesn't matter how much volume you have.
     
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  15. 542thruNthru

    542thruNthru Well-Known Member

    May I ask where you got that 20% number.

    I read it was 7%.
     
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  16. zubenelgenubi

    zubenelgenubi Well-Known Member

    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.
     
  17. Staydryitsraining

    Staydryitsraining Active 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.
     
  18. Eat Sleep Fish

    Eat Sleep Fish Isaiah 5:20

    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.
     
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  19. barnyard

    barnyard KTM rider Staff Member

    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.
     
    Last edited: Jun 8, 2019
  20. badpal

    badpal Active 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 .