Amazon > UPS In Seven Years? *On Topic Please*

Overpaid Union Thug

Well-Known Member
What current growth do they have in shipping? They leased a few thousand trailers and some planes. Right now they are taking the low hanging fruit and saving themselves a little money.

At some point FedEx and UPS will give them an ultimatum. Keep taking the easy deliveries from us and prices for your other deliveries and peak season overflow will go sky high.
Its a projection based on their current growth. Just because it's not apparent in your area now doesnt mean its not happening elsewhere.
 

Northbaypkg

20 NDA stops daily
I still think Fedex was smart for walking away from Amazon for the most part. Let them deliver their own crap and let them struggle to get it going. We would benefit by other big online sellers closing the gap during that time with special contracts with us and Fedex. Not sure why UPS feels the need to pave the road and give them directions.

This is also what I was wondering about. We're pretty much helping them get on their feet as a delivery service. I just hope our higher ups have some kind of strategy about this and not getting duped by Amazon. It seems like at our hub we've been having more Amazon NDA than ever. I wonder if Amazon has been having trouble handling it themselves and passing it off to us?
 

Brownslave688

You want a toe? I can get you a toe.
This is also what I was wondering about. We're pretty much helping them get on their feet as a delivery service. I just hope our higher ups have some kind of strategy about this and not getting duped by Amazon. It seems like at our hub we've been having more Amazon NDA than ever. I wonder if Amazon has been having trouble handling it themselves and passing it off to us?
Many of us on here have been saying for 4-5 years we should of told Amazon back off or were going to charge you full price.


I've heard a few different things. I heard we are planning for a future without any Amazon within the next 5 years. I've also heard we basically told Amazon they are are gonna have to start delivering some of their own stuff because we can't handle it all.
 
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pickup

Guest
This is also what I was wondering about. We're pretty much helping them get on their feet as a delivery service. I just hope our higher ups have some kind of strategy about this and not getting duped by Amazon. It seems like at our hub we've been having more Amazon NDA than ever. I wonder if Amazon has been having trouble handling it themselves and passing it off to us?
I read somewhere that some teamster pilots that Amazon contracted with went on strike briefly in December. The pilots stopped striking but Amazon was concerned that they could do so again and said that they would use other options to move their air freight which includes other shipping companies. That is until they can resolve the problem(whatever the problem might be).

You can google to find the story but it might explain the large amounts of Amazon NDA you are seeing.
 
P

pickup

Guest
I took my own advice and Googled "Pilot strike Amazon" and refreshed my memory. The strike was in November and the pilots were forced by a judge to return to work with about a week left in November. The I found an article dated in early December that had Amazon saying they would use other shipping companies until the underlying issues can be resolved(or avoided). It seems they were afraid of another strike during the crucial holiday season.

That's the gist of it without belaboring the fine details. I would provide the links but I don't know how to do that on a smartphone.
 

Northbaypkg

20 NDA stops daily
I took my own advice and Googled "Pilot strike Amazon" and refreshed my memory. The strike was in November and the pilots were forced by a judge to return to work with about a week left in November. The I found an article dated in early December that had Amazon saying they would use other shipping companies until the underlying issues can be resolved(or avoided). It seems they were afraid of another strike during the crucial holiday season.

That's the gist of it without belaboring the fine details. I would provide the links but I don't know how to do that on a smartphone.
Yeah I remember reading about that. Scary thing with the Google app on my smartphone. Every story it recommends I am genuinely interested in. It recommended that Amazon pilot strike one. I didn't put two and two together that maybe that's why we're getting a ton more Amazon NDA packages.
 

brett636

Well-Known Member
I may seem crazy for saying this, but I don't see Amazon being able to drop either UPS or Fedex in the coming years. Their growth has been unreal, and to move all that volume requires an increasingly more complex supply chain which will require traditional carriers, contractors, and maybe some Uber like drivers who make a little extra money on the side delivering packages. When I moved into feeders in 2010 UPS was the sole carrier for Amazon, and while our volume has increased from Amazon significantly since then Amazon is using Fedex and the USPS more today than they were then too. I can't predict the future, but I can say that in my feeder department alone we have added 3 new drivers for every 1 retirement since I started driving over 6 years ago. We are putting on another 50 drivers this year. I don't believe we have much to worry about, even from Amazon.
 

Jkloc420

Do you need an air compressor or tire gauge
I can see amazon getting into the field. however they still have to build the infersteucture to handle. second DHL which was in better shape to handle this failed a while back. I do think amazon will come into the business but the market is big enough for all three to compete. look at FedEx, they are still around and people said they couldn't compete with ups. just give customers another choice to get their packages tore up.
 

3 done 3 to go

In control of own destiny
I can see amazon getting into the field. however they still have to build the infersteucture to handle. second DHL which was in better shape to handle this failed a while back. I do think amazon will come into the business but the market is big enough for all three to compete. look at FedEx, they are still around and people said they couldn't compete with ups. just give customers another choice to get their packages tore up.

I can see Amazon buying FedEx. Or,DHL US start up agreement. Then UPS would be in serious competition.
 

bbsam

Moderator
Staff member
My guess is that neither UPS nor FedEx cares too much if Amazon delivers their own because there simply isn't enough profit margin in that account. They can always cut workforce. If, however, Amazon starts competing for other accounts, we'll then a switch gets thrown in Memphis and Atlanta.
 

Overpaid Union Thug

Well-Known Member
The main reason i think it COULD happen is that Amazon would essentially be moving their own product. Other carriers have to rely on whether or not companies and individuals are willing to use them. We are just the middle man. We don't have a product to sell. Amazon would like to take out the middle as much as possible.
 

Brownslave688

You want a toe? I can get you a toe.
The main reason i think it COULD happen is that Amazon would essentially be moving their own product. Other carriers have to rely on whether or not companies and individuals are willing to use them. We are just the middle man. We don't have a product to sell. Amazon would like to take out the middle as much as possible.
Who cares if they deliver their own stuff?


Until they start delivering other Companies goods it's a non starter.
 

Rick Ross

I'm into distribution!!
The main reason i think it COULD happen is that Amazon would essentially be moving their own product. Other carriers have to rely on whether or not companies and individuals are willing to use them. We are just the middle man. We don't have a product to sell. Amazon would like to take out the middle as much as possible.

Do you think UPS would rather deliver 120 million Amazon boxes each year at $4 per box or 50 million at $6 per box?

I think UPS is happy to let Amazon deliver with their subcontractors in larger cities. For UPS it's a win-win situation. They can charge more for each package delivered and they don't need to invest in infrastructure chase by one, mostly unprofitable customer.

I can't wait to see the Amazon fail...I'm telling you their warehouses are a trainwreck when things get busy. To think they are going to control more of the chaos their own policies created will be fun to watch. :)
 

Returntosender

Well-Known Member
If FedEx hasn't eclipsed UPS in 20 years, why would Amazon succeed in 7?
Perhaps Fred S wasn't willing to take crazy chances with Fed Ex. He is ex UPS management adopted the UPS management style of slow approach changes.

While Bezos is all balls to walls approach.
 

jaker

trolling
Who cares if they deliver their own stuff?


Until they start delivering other Companies goods it's a non starter.
This right here is what to watch out for , The moment they take accounts from ups and FedEx they need to cut them off immediately

But like I always say why do we even waste time talking about it , we have no say in the matter at all and I think there is enough people in corporate that will make a change because they are scared of losing their jobs and their opinions matter
 
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