Originally Posted by
whalesurfer
True but I think many analysts believe our relationship with Prime will hurt us in the long term. That we’re helping our future competition and that our short-term gains won’t offset the long term damages to our business. In 5-10 years we’ll know.
So in the meantime I’m investing in both.
My take on this is that e-commerce has grown to the point that the US domestic market can support three healthy logistics companies. UPS, FEDEX, and Amazon all have different models for providing similar B2C services. If e-commerce continues to grow, we may see even more entrants to the market. This is just the slow maturation of a business area that UPS has evolved with for over a hundred years.