Threat of Amazon in the package delivery biz
02-10-2018, 10:53 AM
#11
Gets Weekends Off
Joined APC: Jul 2012
Position: 767 FO
Posts: 279
Originally Posted by Ray Kinsella
That’s against the law from what I’ve been told.
Last edited by gatorhater; 02-10-2018 at 11:31 AM.
02-10-2018, 11:11 AM
#12
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Joined APC: Apr 2005
Position: 757/767
Posts: 1,128
Originally Posted by BlazingSaddles
My wife and I were talking about it the other day. We decided that we were going to cancel our prime membership and stop shopping amazon altogether. We came to the conclusion that amazon is putting to many other businesses out of business and I’d rather shop local even if it cost me a little bit more.
02-10-2018, 11:23 AM
#13
Line Holder
Joined APC: Feb 2018
Posts: 27
You all can stop worrying Amazon will negatively harm UPS/FEDEX business or your careers. Until they stop messing around with ACMI carriers and start their own airline paying appropriate wages...services failures will continue and most definitely get worse.
The ACMI carriers have turned into a training ground for every other airline. It will continue this way for the next 5-10 years. At that point, most of pilots doing the training will have retired and the training turnstile will be moving so fast they won't be able to keep up.
The ACMI carriers have turned into a training ground for every other airline. It will continue this way for the next 5-10 years. At that point, most of pilots doing the training will have retired and the training turnstile will be moving so fast they won't be able to keep up.
02-10-2018, 03:16 PM
#14
China Visa Applicant
Joined APC: Oct 2006
Position: Midfield downwind
Posts: 1,919
Amazon is about 40 years of experience behind Brown and Purple in the overnight package delivery game.
It looks "easy" to the outside observer, when it is actually thousands of consecutive miracles being pulled off every night.
Someone entering the field -- regardless of their technology or "disruptive potential" -- will have years of expen$ive catching up to do.
It looks "easy" to the outside observer, when it is actually thousands of consecutive miracles being pulled off every night.
Someone entering the field -- regardless of their technology or "disruptive potential" -- will have years of expen$ive catching up to do.
02-10-2018, 03:47 PM
#15
Gets Weekends Off
Joined APC: Mar 2007
Posts: 638
You really think Fred Smith would go on TV with wild eyes and dripping with sweat and tell the world he's scared to death of Amazon? Of course not. The first time UPS or FedEx announce a concern about Amazon eating them alive it'll be too late. Reminds me a lot of Microsoft and Blackberry laughing at Apple when they came out with the iPhone. By the time they said there was an issue it was all over.
The funny thing is with the long term contracts Amazon has in place with UPS and FedEx they're basically forced to continue to do business for Amazon while they get to slowly build out their own competing logistics system. Without that no company would ever be able to build out that much infrastructure to pose any sort of competition from them. But now they have nothing to do but sit back and hope Amazon can't get their network in place before those contracts expire.
The funny thing is with the long term contracts Amazon has in place with UPS and FedEx they're basically forced to continue to do business for Amazon while they get to slowly build out their own competing logistics system. Without that no company would ever be able to build out that much infrastructure to pose any sort of competition from them. But now they have nothing to do but sit back and hope Amazon can't get their network in place before those contracts expire.
02-10-2018, 04:49 PM
#16
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Joined APC: Nov 2016
Position: 6th place
Posts: 1,826
Originally Posted by SilentLurker
There was a recent Fox Business News video interview with Fred Smith. Google search it. Very enlightening.
Quote above is correct Fred Smith does not see Amazon as a threat, and put out a figure that without Amazon they transport millions of packages a day, and generate income from various sources, and FedEx business model is resilient without Amazon and is still growing.
The interview also touched on Unmanned Cargo flight research and development, improved distribution efficiencies potentials, facilities upgrades (increases CapItal Expenditures) thanks to new tax law, and international growth. Lots of money out there!
On a side note, UPS also just ordered like 14 Boeing 747 to keep the production alive a couple more years. Amazing really.
We are living in interesting times, a lot of growth and money out there. Companies are looking to spend on growth, acquisitions, and people.
Robots, 1 /single pilots crew, then unmanned automation are a couple years away in Fed Smiths life time (as he put it in the interview), 1 leap in technology/discovery & costs can shorten that time frame.
Fly safe, enjoy the growth, put yourself in position to take advantage of opportunities inside and outside of aviation, and earn enough to cushion yourself during any down-cycle.
Quote above is correct Fred Smith does not see Amazon as a threat, and put out a figure that without Amazon they transport millions of packages a day, and generate income from various sources, and FedEx business model is resilient without Amazon and is still growing.
The interview also touched on Unmanned Cargo flight research and development, improved distribution efficiencies potentials, facilities upgrades (increases CapItal Expenditures) thanks to new tax law, and international growth. Lots of money out there!
On a side note, UPS also just ordered like 14 Boeing 747 to keep the production alive a couple more years. Amazing really.
We are living in interesting times, a lot of growth and money out there. Companies are looking to spend on growth, acquisitions, and people.
Robots, 1 /single pilots crew, then unmanned automation are a couple years away in Fed Smiths life time (as he put it in the interview), 1 leap in technology/discovery & costs can shorten that time frame.
Fly safe, enjoy the growth, put yourself in position to take advantage of opportunities inside and outside of aviation, and earn enough to cushion yourself during any down-cycle.
I listened to the interview. He said they’re heavily looking into autonomous trucks and aircraft. He would be doing his shareholders a disservice if he didn’t look into them.
Now whether those autonomous vehicles and aircraft ever become certified and proven they will be cheaper than manned vehicles is the big question.
02-11-2018, 07:30 AM
#17
Gets Weekends Off
Joined APC: Dec 2005
Position: Leftof longitudinal
Posts: 1,899
Originally Posted by iPilot
You really think Fred Smith would go on TV with wild eyes and dripping with sweat and tell the world he's scared to death of Amazon? Of course not. The first time UPS or FedEx announce a concern about Amazon eating them alive it'll be too late. Reminds me a lot of Microsoft and Blackberry laughing at Apple when they came out with the iPhone. By the time they said there was an issue it was all over.
The funny thing is with the long term contracts Amazon has in place with UPS and FedEx they're basically forced to continue to do business for Amazon while they get to slowly build out their own competing logistics system. Without that no company would ever be able to build out that much infrastructure to pose any sort of competition from them. But now they have nothing to do but sit back and hope Amazon can't get their network in place before those contracts expire.
The funny thing is with the long term contracts Amazon has in place with UPS and FedEx they're basically forced to continue to do business for Amazon while they get to slowly build out their own competing logistics system. Without that no company would ever be able to build out that much infrastructure to pose any sort of competition from them. But now they have nothing to do but sit back and hope Amazon can't get their network in place before those contracts expire.
02-11-2018, 09:27 AM
#18
On Reserve
Joined APC: Feb 2012
Posts: 13
Originally Posted by SaltyDog
FedEx or UPS could very quickly start an online retail business. Both could do so much quicker and much more simply than Amazon can create a transportation infrastructure. Amazon would have to compete for workers that are hard to find even for UPS and FedEx that would be reliable enough to move their own volume, much less open market volume. Certainly Bezos likes his disrupter moniker, but business reality in the transportation side really isn't his core business. He is simply looking to add reliability and cost savings on his core feeds internally for his distribution nodes. Makes sense. The rest is market fodder for ego.
UPS/FedEx executives have already crossed over. To think they started as a online used book store!
02-11-2018, 12:24 PM
#19
Gets Weekends Off
Joined APC: Dec 2005
Position: Leftof longitudinal
Posts: 1,899
Originally Posted by Littlebird
Don't put your head in the sand with this company. They're on the heals of being the Largest market cap company in the U.S. Soon to take over CVG and they have access to very affordable, efficient Aircraft at their disposal. They're just spooling up. Some top
UPS/FedEx executives have already crossed over. To think they started as a online used book store!Common for execs to jump ship when opportunity knocks. Corporate America normal. All mercenary at that level. UPS/FedEx get top level mercenaries too. Unless they are going after Airbus freighters, Boeing lanes pretty full for awhile. Then have to pay pilots much more that what he is willing to contract at present, then he will need to bring in house....
My head is out of the sand, joy to watch the heads in the stratosphere
02-12-2018, 12:32 AM
#20
Banned
Joined APC: Sep 2015
Position: MD-11 FO
Posts: 493
Walmart is launching a full on Amazon assault... hip new commercials are airing during the Olympics with the focus on the Walmart package showing up at your door.
Amazon stock will self correct when the competition gets real. No single company is going to rule the US consumer goods economy. The government wouldn’t allow it, and most Americans would revolt against it.
Here is a recent Walmart commercial about the box from a few weeks ago. They’re getting “primed” to go toe-2-toe with Amazon.
https://youtu.be/azV8J9wMNXs
Sent from my iPhone using Tapatalk
Amazon stock will self correct when the competition gets real. No single company is going to rule the US consumer goods economy. The government wouldn’t allow it, and most Americans would revolt against it.
Here is a recent Walmart commercial about the box from a few weeks ago. They’re getting “primed” to go toe-2-toe with Amazon.
https://youtu.be/azV8J9wMNXs
Sent from my iPhone using Tapatalk
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