UPS to cut its amazon business by more than 50%

Wally

BrownCafe Innovator & King of Puns
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CHEMA-DELMA

Well-Known Member
It seems like this has been the plan all along. These press releases are wording it like UPS told Amazon to pound sand, but ultimately Amazon has been chipping away at volume for years.
I see Amazon delivering all their own stuff with x miles of major metros and keeping hard to reach America on UPS trucks. Equaling 50 percent decline in volume.

Nothing to see here.
My opinion- the reason the rural deliveries went from 5 days per week to 2/3. Amazon does not want to send their own units to those zip codes. That does not equate to a 50% volume drop. Not much profit in delivering to houses.
 

CHEMA-DELMA

Well-Known Member
Looking back now, I think what happened, they wanted to happen. Just like you guys are talking about Amazon.
I drive by my Center now, it was built in 1971. Still using it. I drive 2 miles away. Humongous FedX Ground Station built 2 years ago, they are running over 50 trucks out of there daily.
I retired in 2009. They were running 22 -25 routes daily. They might add a couple more, but nothing has changed.

I'm thinking someone might have been thinking, let them have it. Down the road, if we don't, we're gonna have to build all kinds of new buildings, a zillion trucks, drivers, etc. They knew the volume was coming. They didn't want it. They're doing what they decided years ago.
Agree to some of your points, but the growth of the new super hub network GA,PA,UT,TX. Are all 60K locations. You need volume to feed them. The Network struggled for years and the MGT Committee took too much time to build these now they will be moth balled.
 

Ou812fu

Polishing toilet bowls since 1966.
For sure they would have been moving towards automation regardless. I think the contract incentivised even more cost cutting. The company certainly is moving in a new direction.
No better not bigger, was planned before it was said. Look at where that individual has been.
 
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