Originally Posted by
No Land 3
Yes, I fully expect Fed Ex and UPS to make changes to remain competitive against what Amazon may come up with. It is this very expectation that I feel pilot pay and future labor contracts will eventually be affected, in the theme of lowering costs to match Amazon. This is also why I do not agree with people who put their head in the sand and think they are immune to Bezos.
UPS and FedEx seeks to lower their costs every contract. Nothing new. It is already the standard. Think since first airline pilot contract that has been the standard. Regardless, some industry analysts have written about the expense AMZN pays now growing infrastructure wont be competitive if AMZN cannot better manage growth long term. Same problems all logistics providers face.
I don't think all heads are in the sand, but some appear to have theirs in the clouds. Its a gritty market, but I don't see pilots going lower in their contracts. Especially when AMZN is only about 5% of their market volume.
AMZN has along long way to go to manage their own market much less take away the other 95% of FedEx and 95% of UPS. That would be a phenomenal and rapid shift. The reality for AMZN is when UPS and FedEx decide to not treat AMZN as a customer and competes for the AMZN customers. Its just a website meeting point. We just haven't seen the tipping point publicly. Certainly no one credible thinks that UPS and FedEx are head in the sand ignoring the market dynamics. They have been doing it for decades and longer.