Originally Posted by
kodiakallstar
If Amazon wants to directly compete with fed ex and ups in the express shipping arena they’d have to go in house. Dhl proved that already when they got dominated in n America. For what amazon is doing now I don’t think that it matters. Does anyone really care what time their Amazon stuff arrives so long as it gets there.
If you are in the business of selling stuff and just want to move it cheaper I think the subcontractor is the way to go. If you are selling time like ups and fed ex you have to go in house. However much Amazon medals in the operations of these subcontractors at the end of the day they don’t have control or a lot of power to fix the problems. Look at what was going on with atlas not being able to staff and operate those airplanes. Eventually they got someone else to move the jets in ati and sun country but they probably had to listen to a parade of excuses and months went by before they got to that conclusion. I don’t think fed ex and ups in that business really have the kind of time to be jerked around like that where Amazon does if it save them money.
Amazon is trying to sell the time aspect... next day shipping has been a priority goal for quite a while. That being said, I believe that the DHL model will be used as long as possible until it ultimately is more profitable to bring it all in house... and what that looks like is anybody's guess