Why your Amazon Prime addiction is bad for UPS

Big Arrow Down...D

Leave the gun,take the cannoli
If they came from district and region level. That's an advantage, especially if they came from after realignment. Since Amazon is getting in airfrieght business current air operations managers might jump ship. Specailly if they run 12 flights day. They easily can handle amazon 20, 767 flights. When Amazon air frieght expands those managers who jumped are in good position to move up in ranks.
Do you know how much profit it's going to take to run an airline?
 

Overpaid Union Thug

Well-Known Member
Most of us were either not around or were not paying attention when Express first started or Ground bought out RPS.

Watching this unfold from day one will be very interesting.
UPS was a victim of their own arrogance during the formation of both FedEx Express and RPS. That arrogance was why they weren't paying attention. And now they are blinded by quarterly stock performance. Just like when RPS was bought by FedEx. When will corporate ever learn?
 

Orion inc.

I like turtles
UPS was a victim of their own arrogance during the formation of both FedEx Express and RPS. That arrogance was why they weren't paying attention. And now they are blinded by quarterly stock performance. Just like when RPS was bought by FedEx. When will corporate ever learn?
If you think corporate isn't aware of the threat of Amazon then you haven't been here long enough. They know. There's a whole division devoted to it.

Ups didn't stay in business for over 100 plus years for being stupid. They make mistakes but they're not stupid to the long term.
 

rod

Retired 22 years
If you think corporate isn't aware of the threat of Amazon then you haven't been here long enough. They know. There's a whole division devoted to it.

Ups didn't stay in business for over 100 plus years for being stupid. They make mistakes but they're not stupid to the long term.
 

FrigidFTSup

Resident Suit
Do you know how much profit it's going to take to run an airline?
Figure 2.5 billion for the 20 767s (Aircraft manufacturers heavily discount their aircraft), 767 engines are practically being given away right now, so they can probably get 40 plus another 2-3 spares for around 200 million, another 5-10 million to gain an operating certificate. For 20 aircraft you're going to need a large spares department. Throw another 10-15 million on that. Pilot training another 5 million.

Just to get the planes on property is around a 2.7-2.8 billion dollar expense. That doesn't even factor in the infrastructure needed. Now I'm not saying they aren't going to do it. But to do it on the scale being discussed, we are talking about a massive cost undertaking. They have 14 Billion cash on hand so they can do it pretty easily. But will the shareholders accept another business undertaking while receiving little in return? I'm skeptical.
 

Overpaid Union Thug

Well-Known Member
If you think corporate isn't aware of the threat of Amazon then you haven't been here long enough. They know. There's a whole division devoted to it.

Ups didn't stay in business for over 100 plus years for being stupid. They make mistakes but they're not stupid to the long term.

True but UPS has only been a publicly traded company for about 17 years. They've lost their way during that time. Or should I say.....lost their way on November 10, 1999? LOL! They are probably not too worried about Amazon withering away. They won't react until it affects there stock price. LOL. What a sad company UPS has become. I just hope this thing with Amazon is a long and slow process. And that enough old timers that are ahead of me on the seniority list will be gone so I can move up before we start losing enough volume to warrant more cut routes.
 

35years

Gravy route
They have 14 Billion cash on hand so they can do it pretty easily. But will the shareholders accept another business undertaking while receiving little in return? I'm skeptical.
Are you kidding?
Shareholders in Amazon have made out like bandits.
Amazon stock has more than doubled in the last year.
In the last 7 years Amazon stock has gone from $51.25 to $662!
Little in return?
That is a 12 fold increase!
 

Big Arrow Down...D

Leave the gun,take the cannoli
Figure 2.5 billion for the 20 767s (Aircraft manufacturers heavily discount their aircraft), 767 engines are practically being given away right now, so they can probably get 40 plus another 2-3 spares for around 200 million, another 5-10 million to gain an operating certificate. For 20 aircraft you're going to need a large spares department. Throw another 10-15 million on that. Pilot training another 5 million.

Just to get the planes on property is around a 2.7-2.8 billion dollar expense. That doesn't even factor in the infrastructure needed. Now I'm not saying they aren't going to do it. But to do it on the scale being discussed, we are talking about a massive cost undertaking. They have 14 Billion cash on hand so they can do it pretty easily. But will the shareholders accept another business undertaking while receiving little in return? I'm skeptical.
All that to ship their own pkgs...
 

Catatonic

Nine Lives
True but UPS has only been a publicly traded company for about 17 years. They've lost their way during that time. Or should I say.....lost their way on November 10, 1999? LOL! They are probably not too worried about Amazon withering away. They won't react until it affects there stock price. LOL. What a sad company UPS has become. I just hope this thing with Amazon is a long and slow process. And that enough old timers that are ahead of me on the seniority list will be gone so I can move up before we start losing enough volume to warrant more cut routes.
Sounds more like that you lost your way on November 10, 1999.
 

Orion inc.

I like turtles
True but UPS has only been a publicly traded company for about 17 years. They've lost their way during that time. Or should I say.....lost their way on November 10, 1999? LOL! They are probably not too worried about Amazon withering away. They won't react until it affects there stock price. LOL. What a sad company UPS has become. I just hope this thing with Amazon is a long and slow process. And that enough old timers that are ahead of me on the seniority list will be gone so I can move up before we start losing enough volume to warrant more cut routes.
Amazon isn't exactly an amazing stable company as well. They've got a lot of issues also.
 

Orion inc.

I like turtles
Figure 2.5 billion for the 20 767s (Aircraft manufacturers heavily discount their aircraft), 767 engines are practically being given away right now, so they can probably get 40 plus another 2-3 spares for around 200 million, another 5-10 million to gain an operating certificate. For 20 aircraft you're going to need a large spares department. Throw another 10-15 million on that. Pilot training another 5 million.

Just to get the planes on property is around a 2.7-2.8 billion dollar expense. That doesn't even factor in the infrastructure needed. Now I'm not saying they aren't going to do it. But to do it on the scale being discussed, we are talking about a massive cost undertaking. They have 14 Billion cash on hand so they can do it pretty easily. But will the shareholders accept another business undertaking while receiving little in return? I'm skeptical.
They're going to need heavy package density to be profitable too. Amazon actually is starting to show signs of struggling in the e-commerce sector. They're not as cheap anymore and their customer service isn't what it used to be.

They've got issues just like we do. Except Amazon is trying to spread and conquer too many industries while letting their core business start to slip in quality.
 

Orion inc.

I like turtles
True but UPS has only been a publicly traded company for about 17 years. They've lost their way during that time. Or should I say.....lost their way on November 10, 1999? LOL! They are probably not too worried about Amazon withering away. They won't react until it affects there stock price. LOL. What a sad company UPS has become. I just hope this thing with Amazon is a long and slow process. And that enough old timers that are ahead of me on the seniority list will be gone so I can move up before we start losing enough volume to warrant more cut routes.
I think going public was a mistake. I'd like to see ups go private again. Part of our restraint is answering to Wall Street.
 
I forbid my wife from renewing the prime membership and using Amazon. They are bad for the future of our company and the teamsters. They bash us all the time and their owner is a lunatic who wants to take over the world. Ups would be better off not shipping another product of theirs and Fedex would be smart to do the same. Amazon will be a very big monopoly soon.
 
Top