Amazon will take all your ignorant route buyers

[vantexan]

When they run out of disposable human beings working like slaves for pennies the gig will be up for whichever one of them hasn't developed drone technology in time.

They say even a broken clock is right twice a day. So hang in there, eventually you'll be right.

 

[Exec32]

Yeah some FedEx Kool Aid drinkers just don't get it.

Salty ball flavor.

 

[dmac1]

Barely begun to enter?
Amazon has the advantage because delivering is NOT THE ONLY AREA of their business model, unlike X. With that said they dont have to be perfect, in fact they dont even have to break even doing it. So, yes being multi dimensional or diversified is a unique advantage.

They can even LOSE money on their delivery service if having faster delivery service increases sales. If they simply spend as much per delivery as fedex does, they will save money by not making a profit for fedex. The added cost of shipping with fedex because fedex needs to make a profit will be a savings for Amazon. Even if, for example, fedex makes 10 cents profit per package, but it costs Amazon 9 cents more to deliver the package, Amazon still saves money-1 cent pure extra profit per package!!!!!!

And fedex WILL use other carriers where they are more efficient, like the post office for rural deliveries. And some are ignoring that Amazon will save money on products they sell if they can save even a penny by picking up products from shippers using their own Amazon drivers. That further reduces shipments for fedex. Fedex stands to lose volume on BOTH ends- from the seller to the warehouse, and from the warehouse to the buyer. If that adds up to 2 cents extra profit per package for Amazon, it doesn't matter if their shipping costs before profit are a bit higher.

And that they can profit more even with higher costs will allow them to pay more to drivers. More sellers, more customers, lower shipping costs because they don't need to profit from their delivery service, all adds up to a win for Amazon. Fedex may even end up with the same volume of Amazon deliveries after accounting for Amazon growth, but it won't be the gravy deliveries around the distribution centers. And that volume will likely be enough for fedex/UPS/USPS to continue to offer Amazon discounts for the non-gravy deliveries, and put further costs on the contractors. .

 

[zeev]

You seem like a reasonable person. Read this article, it explains exactly how they will achieve it.

Dano dont try reading, it will hurt your brain.

Great article thanks, glad I sold my FDX stock at 239 after the Amazon announcement.

 

[Exec32]

This thread started out addressing two issues. One Amazon pursuit of becoming a carrier, and 2 Amazon adopting the same model X used to build its ground network. That brings me to the other issue. For contractors that believe you have a golden egg, and rely on this elusive equity to value your labor agency, the introduction of Amazons contractor model into the market for an initial investment of 10000 will drive down the price one will be willing g to pay for your "company". Supply and demand. You might want to have a meeting withX to find out how they are going to preserve, grow, and compete with Amazons aggressive tactics.
That meeting will go real good. In fact there is not a contractor out there that will attempt to confront X, even for your own business interest.
Here's a good question, hello X now that you no longer have exclusive rights to the abusive exploitive contractor model and Amazon will be using it, what do you plan to do to regain a competitive advantage. Answer, screw you more and pay you less, now get to work bum!

 

[Exec32]

Great article thanks, glad I sold my FDX stock at 239 after the Amazon announcement.

Amazon and Walmart interest in delivering their own products, the trade war on the horizon, and a peak season that will not meet expectations. X GOING 175.00 3Q 2019
NOT FINANCIAL ADVISE.

 

[It will be fine]

I think Fred is correct in shippers won’t hand over their entire supply chain to Amazon. Those that do won’t be around for long. Amazon will take the data they gather to undercut any successful sales. Amazon’s expansion into the shipping industry would require companies willfully destroying themselves. The article you posted mentioned several companies that did just that and paid the price. The word is out and the sales force of UPS and FedEx won’t let customers forget it.

 

[bacha29]

You seem like a reasonable person. Read this article, it explains exactly how they will achieve it.

Dano dont try reading, it will hurt your brain.

Bezos thinks that he's got it all figured out but the rural areas will get him in the end.
People sticking McMansions with 50 cent roads back in the most God forsaken places you can imagine, spending all of their money on the house while never factoring in the cost of building a road or getting utilities back into them or keeping them open in winter.
UPS and Fat Freddy are still holding all the cards by simply being a nationwide carrier. Yeah, they'll still haul Bezos junk for him but he's going to pay out the wazoo to get it done which could leave him having to go to the carrier of the last resort.....The United States Postal Service.

The party that might just in the end benefit from all this could be XG contractors in the rural areas if they are finally being paid rates that reflect the true cost of rural delivery service and are equipped with vehicles with off road capability.

 

[bacha29]

Amazon and Walmart interest in delivering their own products, the trade war on the horizon, and a peak season that will not meet expectations. X GOING 175.00 3Q 2019
NOT FINANCIAL ADVISE.

Indeed. Reports are coming in from all directions pointing to a trade war and federal deficit spending driven recession sometime in or around the time you've mentioned .

 

[oldrps]

Amazon has a very long way to go to be a true threat to UPS and FedEx as a common carrier, but they will be a fly in the ointment. Amazon most likely will target small shippers who do not enjoy big discounts with FedEx and UPS, these are the most profitable packages. They won't handle over 70lb packages due to USPS weight limit and will not target large packages as they don't fit in cars. They will deliver the metropolitan/city packages and have USPS deliver the rural packages. They will reduce their dependence on the USPS as density increases in those areas. As they slowly build their density, then they will be a major threat to UPS and FedEx.

As Amazon ramps up their delivery service, they will not deliver, i feel, the same way UPS and FedEx do. It will be a different model, I fell they will have waves of vans and cars every few hours going out to deliver in the cities versus UPS and FedEx that go out once a day. Right now, if a trailer arrives at 1:00 pm at UPS or FedEx, it waits for delivery the next day, Amazon will deliver it the same day. Amazon could have later cut times and go further in less days than UPS or FedEx.

Amazon cares about lowering their cost of delivery of their packages and will subsidize their delivery cost with other shippers packages. Amazon has the luxury of not starting out as a delivery company and depending on volume to grow. They can cherry pick the most profitable packages and let UPS and FedEx fight over the lower revenue packages. If it becomes profitable to deliver packages as if it were a stand alone company, watch out UPS and FedEx.

 

[59 Dano]

Barely begun to enter?
Amazon has the advantage because delivering is NOT THE ONLY AREA of their business model, unlike X. With that said they dont have to be perfect, in fact they dont even have to break even doing it. So, yes being multi dimensional or diversified is a unique advantage.

LOL, such great logic!

 

[59 Dano]

Keep up with the speculation, champ.

From the guy who has all but declared the death of FedEx at the hands of Amazon.

Man you must be in real deep with X. What a cheerleader..

From the guy who is figuratively fellating Bezos in every post.

 

[59 Dano]

Market cap of Fdx 58 billion market cap of Amazon 1 trillion

And?

 

[59 Dano]

That brings me to the other issue. For contractors that believe you have a golden egg, and rely on this elusive equity to value your labor agency, the introduction of Amazons contractor model into the market for an initial investment of 10000 will drive down the price one will be willing g to pay for your "company". Supply and demand. You might want to have a meeting withX to find out how they are going to preserve, grow, and compete with Amazons aggressive tactics.

Going out on a limb here, but I bet Ground will be more than happy to let Amazon have all the rubes they can find who are willing to enter into contracts that are worse than anything Ground could ever dream up. Here's something you need to know... if $10,000 is all it takes, then they're selling garbage to people who can't afford anything better than garbage.

 

[59 Dano]

I think Fred is correct in shippers won’t hand over their entire supply chain to Amazon. Those that do won’t be around for long. Amazon will take the data they gather to undercut any successful sales. Amazon’s expansion into the shipping industry would require companies willfully destroying themselves. The article you posted mentioned several companies that did just that and paid the price. The word is out and the sales force of UPS and FedEx won’t let customers forget it.

But but but AMAZON JEFF BEZOS OMG OMG OMG

 

[59 Dano]

Indeed. Reports are coming in from all directions pointing to a trade war and federal deficit spending driven recession sometime in or around the time you've mentioned .

I'M NOT DRIVING I'M TRAVELING. IT'S NOT A CAR IT'S A VESSEL.

 

[59 Dano]

They can cherry pick the most profitable packages and let UPS and FedEx fight over the lower revenue packages.

That assumes that UPS and FedEx would want those packages. I don't remember the number for UPS, but a little over a year ago Amazon comprised between three and five percent of FedEx's business across the Express, Ground, and SmartPost segments, with the bulk of it going to Ground and SmartPost. If they were to lose all but the BFE freight, then they wouldn't be any worse off to turn down the BFE freight as well. That's assuming FedEx wouldn't gladly take it... for the right price.

 

[oldrps]

That assumes that UPS and FedEx would want those packages. I don't remember the number for UPS, but a little over a year ago Amazon comprised between three and five percent of FedEx's business across the Express, Ground, and SmartPost segments, with the bulk of it going to Ground and SmartPost. If they were to lose all but the BFE freight, then they wouldn't be any worse off to turn down the BFE freight as well. That's assuming FedEx wouldn't gladly take it... for the right price.

I am talking about current UPS and FedEx shippers shifting their volume to Amazon delivery service for final delivery. These are not packages ordered through Amazon. Both UPS and FedEx will be fine if and when Amazon shifts all of their volume from them. It is Amazon delivery service ramping up and switching UPS and FedEx customers to its delivery service is the threat.

 

[Exec32]

From the guy who has all but declared the death of FedEx at the hands of Amazon.



From the guy who is figuratively fellating Bezos in every post.

Nope, just pointing out some market drivers and disruption. I could care less about Amazon or X, it's the changes in the industry in the introduction of a new carrier.
Oh, and the irony of Amazon running with the low cost model that X perfected.

 

[Exec32]

I think Fred is correct in shippers won’t hand over their entire supply chain to Amazon. Those that do won’t be around for long. Amazon will take the data they gather to undercut any successful sales. Amazon’s expansion into the shipping industry would require companies willfully destroying themselves. The article you posted mentioned several companies that did just that and paid the price. The word is out and the sales force of UPS and FedEx won’t let customers forget it.

Please dont listen to Freddy, he doesn't need you or his shareholders knowing he has no answers.