Originally Posted by
Python1287
https://www.bloomberg.com/news/artic...of-pricey-jets
Amazon started a UPS-like parcel service in the U.K. last year, but abandoned a similar effort in the U.S. amid the surge in online orders. Much of Wall Street believes Amazon will eventually fly packages for other companies to defray investments in Amazon Air and generate new revenue streams, much the way it did with other logistics services and its cloud-computing division.
“I absolutely expect them to pick that up again,’’ says Ravi Shanker, a Morgan Stanley logistics and transportation analyst.
But for now, Amazon Air ships items already in its warehouses, typically bound for customers.
Understand and I refer you to my above statements. Take a look at the predictions on cargo demand growth expectations and pair that with reduced capacity. Let Amazon haul the low margin garbage. Let FedEx haul the higher revenue garbage. Plenty of room for others in the cargo market as we order everything from our couches now.
Remember when FedEx is bidding/negotiating a contract they are not only offering to haul the stuff they are offering many other ancillary benefits.