motorclutch

Old news....and DHL was gonna decimate the domestic overnight market! How did that work out?

Tango Uniform

I live near two Amazon Fulfillment Centers. Recently have been seeing a number of DHL Supply Chain tractor trailers going there. They are not the bright yellow and red either. All white tractors with DHL Supply chain solutions stickers very small and rental trailers or all white trailers with no markings for the most part. Something is going on between the two.

Amazon has also hired away a number of UPS management. Not sure if that helps them though.....

CactusCrew

LOL

Depends on which ones, and how long they were at Brown.

There might be hope for them ...

brownie

And ups has hired Wal-Mart and Amazon hireups and exec's too and it doesn't mean squat. All this hype of Amazon going head to head with FedEx and ups is nothing more than w hen SWA bought Airtran and was moving into Atlanta or when jet blue came into business to compete in LCC market and so on. Look packages and people are all the same there are plenty to go around and E-commerce is doubling in next 10 to 15 yrs. Amazon wants to jump in they're more than welcome it's still not enough planes and people to handle the rate of growth to keep up with demand. As of 2017 only 8% of total us retail purchase was done online now you do the math in next 10 to 15 yrs as e commerce double as online shopping and shipping how entering Amazon into logistics can hurt ups or FedEx. Simply not enough lift no matter who comes in to the play.
JMO

Tango Uniform

With the amount of Amazon Fulfillment Centers going up, did you think about majority of packages never touching an airplane like UPS? Able to reach the majority of the population with in two days by ground? UPS built the ground infrastructure first. Amazon is doing the same putting up million square foot centers around the country.

Amazon's North American sales increased 25.2% in 2016. Meanwhile, the U.S. Census Bureau has been tracking e-commerce sales growth at around 15.5% through the first three quarters of 2016.
Put another way, despite its size, Amazon continues to take share of the growing e-commerce market, and competitors (Walmart) are struggling to keep up.

I would say that no competitor of Amazon would use Amazon. Finding out a lot of their competitors are using their cloud based servers along with Fed Ex.

I'm also seeing FDX Ground centers going up right beside new Amazon centers. Don't know what to make of that one.

Tango Uniform

Exactly!!! I think most of the good ones left back in 1999 when the IPO hit. The ones left are bean counter drones that stripped away the identity of UPS. Remember these days? This ship sailed https://www.youtube.com/watch?v=Mk8BhQEuzyI

brownie

I agree as far as fulfilment centers going that's to feed the low yield stuff th at don't need to touch planes. It costs Amazon lots a money for prime 2 day when shipping has to go on an airplane however cargo and high volume which accounts for 65% of us goods needs to be brought in by ships and planes and be distributed . Companies like Alibaba with bigger reach world wide than Amazon are starting to take market share and that will be a game changer now how ups and FedEx will be handling all this change it's a story to watch by all of us but there bas to be a reason why Brown & Purple investing over 12 Billion over next few years upgrading and buying new infrastructures.

whalesurfer

Maybe they’re just preparing for a combined future?

“Prime On Time”, new callsign - PrimEx.
_____

Should Amazon Just Buy FedEx?
Teresa Rivas Nov. 17, 2017 10:08 a.m. ET

While Amazon (AMZN) has made two-day and even two-hour order fulfillment a reality, it still faces a problem with shipping, along with every other retailer: It doesn't control the "last mile" delivery to consumers, Loop Capital's Anthony Chukumba and Rick Paterson write. Their solution: Buy FedEx (FDX).

The issue is that Amazon has to rely on third parties when it comes to delivery and returns, and Chuckumba and Paterson write that FedEx and UPS (UPS) naturally want to take "their pound of flesh" from the process, in this case in the form of margin.

Yet doing so, while a thorn in Amazon's side, is becoming more important to UPS and FedEx, as business-to-consumer shipments, which are low margin, have reached a "critical mass," that's straining their margins and budgets--which hasn't gone unnoticed by shareholders, who want price increases.

This is playing out agains a broader backdrop of inefficiencies in the system that make a deal more appealing:

Finally, there are also inherent cost inefficiencies in the broader system driven by the lack of coordination and competing interests between the sellers and shippers that could be eliminated by bringing them under one roof. Amazon's options are to: 1) do nothing (unlikely); 2) build its own last mile network (drones are no silver bullet); or 3) buy. In this report we discuss all three options and focus on FedEx for the buy option, which we regard as the better fit.
That said, they don't think that an Amazon bid for FedEx is probable in the near-term (or maybe even ever), given Amazon's focus on expanding into international markets, developing AI via Alexa, and retooling its video strategy, but they think it's "food for thought" as the company seeks new solutions for the last mile problem.

Amazon, FedEx, and UPS are all down about 0.3% in recent trading.

https://www.barrons.com/articles/sho...dex-1510931336

Tango Uniform

The only union that FDX has on property is the pilots too.... I think it’s a stretch but stranger things have happened.

Spike from flyi

Perhaps Bezos has overplayed his hand:

https://www.theguardian.com/technolo...ts-second-home