amazon will debunk UPS in the future

[clean hairy]

I am guessing not many airlines were concerned with a puddle jumper commuter airline with a few flights a day.
Took many years, but look where Southwest Airlines is today.
By the same token, others tried and failed as well.

 

[Faceplanted]

I'm sure ibm said "it will never happen" we're too big and were the best.

Eastern airlines, dell and tons of other companies have been there too.

We need to take this threat seriously and plan accordingly.

 

[Brownslave688]

I'm sure ibm said "it will never happen"

Ibm is still huge.

 

[Faceplanted]

Ibm is still huge.

Huge or not, ask all those people who got laid off how they were thinking.

 

[moldsporh]

Fed ex express was more established before ups air service was.

You already know what we deliver to turn a small profit over the course of millions of pieces. it's going to take another company a long long time to catch up to where we are if they even do.

But, with Orion screwing all our customer relations up, the customer is not having any idea when their stuff is coming because we deliver all over the place now in an incredibly inefficient manner, maybe it will happen sooner than later.

 

[RPSman]

Amazon will build their own package delivery system in the future. The best way to do it would be by acquiring or working with the current regional parcel companies who cover a large percentage of the population centers in the USA. For remote deliveries, they could use the USPS, like RPS did before achieving 100% USA coverage in 1996. 1997 UPS strikers have themselves to blame for FDX's rapid rise. If they had not gone out on strike, Fed Ex and Caliber Systems (Roadway Services-less Roadway Express) would not have merged. As to the DHL failure, that was because Airborne Express was an overnight letter and small box express carrier, and did not have the infrastructure to compete in heavy package volume. Amazon is a lot smarter than Deutsche Post, and would be able to build the infrastructure needed, evidenced by their acquisition of wide body cargo jets. For additional ground capacity, they could always contract with Con Way Freight or Con Way Truckload, similar to what APX Logistics (old American Package Express) contracted with Werner, Inc. to move shipments.

 

[Brownslave688]

I could really care less what Amazon does. What makes me mad is for 2+ years ups and fedex drivers have been screaming to management. Call amazons bluff. Take their discount away and watch them crash and burn.

 

[onehandsolo]

A lot of ups pickup accounts ship packages to Amazon fulfillment centers. This to me is the scary part. Amazon is hiring ups logistics managers to help streamline there business model and ally of these pickup accounts could be in play in the near future.

 

[Hellobrown2000]

I feel like ups and some of you are going the blackberry route of gm route on this, thinking ups can't fail just because of whatever your example may be. Drones will definitely never be successful too much liability and reliability not to mention the FAA already said if it ever takes flight every drone will require one person controlling it, I don't see how that will be cost effective tagged with all the law suits. As mentioned before they account for 1 billion of total sales so as a company it wouldn't hurt but for small buildings where fulfillment centers aren't near by and get all the amazon it will definitely affect jobs. If UPS was smart they would pull the plug on them now and start moving into their own e-commerce business. Amazon has made it clear they are going to build their own ups. Hopefully the powers at be though don't just sit by and watch it happen.

 

[smapple]

I'll root for whichever has better culture of quality workers in the primary and outbounds and treats its hourlys better.

 

[Babagounj]

If Amazon wants to survive now , they are starting at the wrong end of their business .
Forget the jumbo jets , forget logistics their real problem is in their warehouses .
How often have they shipped a rather small item in an over sized parcel with just a single sheet of crumbled brown paper for cushioning ?
Increase the supply of the right size of empty boxes to be used in shipping . Right away they will see their shipping costs decrease .

 

[Babagounj]

When I worked the Customer Counter , nice honest people would dropped off LazerShip parcels explaining that they were left off at the wrong location thinking that we had done it .
LazerShip had no info on who to call or email to pick them up .
We couldn't take them , so I informed those nice people to drop them off themselves or to keep them for themselves . Honestly who would know .

 

[UpstateNYUPSer(Ret)]

A lot of ups pickup accounts ship packages to Amazon fulfillment centers. This to me is the scary part. Amazon is hiring ups logistics managers to help streamline there business model and ally of these pickup accounts could be in play in the near future.

We have a local business (Global Sugar) that sells on Amazon. They have grown to the point where we swap out a trailer on a daily basis.

 

[DOK]

I can't read the whole story...this just popped up on Twitter though.

http://www.wsj.com/articles/amazon-seeks-to-ease-ties-with-ups-1450835575?mod=e2tw

Can read the first paragraph.

 

[DOK]

FDX did it much faster than UPS... I remember everybody saying FDX would never make it. Companies said the same about UPS....

What UPS has to worry about is when Fred is gone from FDX. The air and ground networks will be combined. It's already happening somewhat already. They will have the same advantage UPS has with premium express deliveries never touching a plane, maximizing profits. Doing this with contracted labor and contracted equipment. The labor and asset cost to FDX will be much less than UPS. They will be able to provide the same if not better service less than UPS.

If they combine air and ground it paves the way for the union to enter the picture, from what I understand.

 

[UpstateNYUPSer(Ret)]

If they combine air and ground it paves the way for the union to enter the picture, from what I understand.

Do you think Fred would then follow in the footsteps of Jim Casey and invite the Teamsters to represent his employees?

 

[govols019]

That's hilarious.

 

[Scuba Steve]

Fed ex express was more established before ups air service was.

You already know what we deliver to turn a small profit over the course of millions of pieces. it's going to take another company a long long time to catch up to where we are if they even do.

But, with Orion screwing all our customer relations up, the customer is not having any idea when their stuff is coming because we deliver all over the place now in an incredibly inefficient manner, maybe it will happen sooner than later.

FDX Air service was not more established. People at UPS didn't feel FDX was a threat and wouldn't succeed.

UPS started air service in 1929, 15 years before the founder of FDX was born. UPS stopped air service during the depression. UPS resumed air service with a Blue Label and Red Label air in 1958 when the founder of FDX was only 14 years old.

UPS was like Amazon using other carriers for air shipments. FDX came in the picture with their own planes and pilots (like Amazon is thinking now) in 1971 and serving multiple cities in 1973. This was 15 years after UPS restarting air service. UPS finally started buying aircraft in 1981 and using Evergreen, Orion and Ryan pilots to fly them. UPS was the launch customer for the 757 PF but Ryan was the first operator flying the UPS 757.

UPS finally started their own airline in 1988. Little known fact UPS was in a joint venture with DHL in the late 80's. They both owned half of an airline called IPX. UPS needed the routes to Japan. UPS bought the other half of IPX in 1987 from DHL and used the IPX certificate to form UPS Airlines (5x) in 1988.

Another little known fact was UPS was in talks to buy Flying Tigers for direct flights to China. Fed Ex got it done. Kinda like the TNT deal, UPS botched it. Fed Ex also bought China routes from Evergreen. It took UPS 12 years to finally be able to fly direct to China. UPS had to use space on other carriers to service China while FDX was flying direct.

Arrogance of being the industry leader has lead to many downfalls of companies. The botched TNT deal, UPS had to pay a $267 million termination fee, then FDX ended up getting TNT for $2.2 billion less than UPS was going to pay. This will give FDX equal ground infrastructure in Europe with UPS.

 

[moldsporh]

UPS started air service in 1929, 15 years before the founder of FDX was born. UPS stopped air service during the depression. UPS resumed air service with a Blue Label and Red Label air in 1958 when the founder of FDX was only 14 years old.

UPS was like Amazon using other carriers for air shipments. FDX came in the picture with their own planes and pilots (like Amazon is thinking now) in 1971 and serving multiple cities in 1973. This was 15 years after UPS restarting air service. UPS finally started buying aircraft in 1981 and using Evergreen, Orion and Ryan pilots to fly them. UPS was the launch customer for the 757 PF but Ryan was the first operator flying the UPS 757.

UPS finally started their own airline in 1988. Little known fact UPS was in a joint venture with DHL in the late 80's. They both owned half of an airline called IPX. UPS needed the routes to Japan. UPS bought the other half of IPX in 1987 from DHL and used the IPX certificate to form UPS Airlines (5x) in 1988.

Another little known fact was UPS was in talks to buy Flying Tigers for direct flights to China. Fed Ex got it done. Kinda like the TNT deal, UPS botched it. Fed Ex also bought China routes from Evergreen. It took UPS 12 years to finally be able to fly direct to China. UPS had to use space on other carriers to service China while FDX was flying direct.

Arrogance of being the industry leader has lead to many downfalls of companies. The botched TNT deal, UPS had to pay a $267 million termination fee, then FDX ended up getting TNT for $2.2 billion less than UPS was going to pay. This will give FDX equal ground infrastructure in Europe with UPS.

Was Federal Express delivering more air than UPS in the late 70's early 80's?

 

[Scuba Steve]

Was Federal Express delivering more air than UPS in the late 70's early 80's?

No.

Let's look at an apples to apples comparison? 1982 UPS had their own planes like FDX did since 1973. UPS was delivering a daily air volume of approximately 140,000 packages per day while Fed Ex was delivering an average of approximately 125,000 air packages per day.