Threat of Amazon in the package delivery biz
02-12-2018, 04:32 AM
#22
Gets Weekends Off
Joined APC: Apr 2005
Position: 757/767
Posts: 1,128
Originally Posted by G550Guy
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
02-12-2018, 08:02 AM
#23
Line Holder
Joined APC: Feb 2016
Position: 747 F/O
Posts: 72
I would hope that UPS and Fedex (and their unions) are smart enough not to completely disregard any and all threats Amazon may provide. This is a ruthless low margin business and one of the most powerful US companies is going to take a dive into it. Right now they have terrible service, starting from almost zero, and are widely disliked, but do not underestimate the power and momentum of a $600billion company. Remember how Amazon gets into and eventually dominates market sectors....they dip a toe and chip chip chip away to strike at the perfect moment and utterly crush the competition. That moment certainly isn't now, but if you are unprepared you will lose when the time comes.
02-12-2018, 08:27 AM
#24
The NeverEnding Story
Joined APC: Sep 2005
Posts: 7,504
I believe it is just as naive to overstate the actual risk Amazon poses to UPS/FDX as it is to underestimate their potential risk to UPS/FDX.
Think about Amazon's current logistics and delivery infrastructure: limited sort capability outside distribution centers, 40 aircraft, Prime semi trailers pulled by contractors, packages delivered the last mile by either USPS or contractors in their private vehicles with no markings or uniforms identifying them as Amazon representatives.
Now compare that to UPS and FDX; there really isn't any comparison *today*.
Could Amazon become a risk to the duopoly? Sure, they absolutely could...years down the road...but in order to do so they will need to spend tens if not hundreds of BILLIONS in CapEx on logistics and inventory structure. Lots more airplanes, LOTS more trailers and trucks, lots more sort facilities, all the support equipment required to support all the above, a vastly more reliable last mile delivery setup, and tens of thousands more employees reliable enough to make service guarantees.
All those billions in capital investment for physical infrastructure...just to capture low margin, incremental revenue growth?
Of course, if Bezos buys all or at least a controlling stake of DHL North America the equation changes significantly...and the proposed Amazon hub at CVG along with current co-mingling of DHL and Amazon volume makes that look like a possibility.
Should Memphis and Sandy Springs be paying attention and reading business changes to adapt to a well-funded intransigent competitor? Sure, absolutely! Should they be quaking in their boots at the Amazon juggernaut imminently poised to muscle them out of the logistics and delivery business? Nah....
Think about Amazon's current logistics and delivery infrastructure: limited sort capability outside distribution centers, 40 aircraft, Prime semi trailers pulled by contractors, packages delivered the last mile by either USPS or contractors in their private vehicles with no markings or uniforms identifying them as Amazon representatives.
Now compare that to UPS and FDX; there really isn't any comparison *today*.
Could Amazon become a risk to the duopoly? Sure, they absolutely could...years down the road...but in order to do so they will need to spend tens if not hundreds of BILLIONS in CapEx on logistics and inventory structure. Lots more airplanes, LOTS more trailers and trucks, lots more sort facilities, all the support equipment required to support all the above, a vastly more reliable last mile delivery setup, and tens of thousands more employees reliable enough to make service guarantees.
All those billions in capital investment for physical infrastructure...just to capture low margin, incremental revenue growth?
Of course, if Bezos buys all or at least a controlling stake of DHL North America the equation changes significantly...and the proposed Amazon hub at CVG along with current co-mingling of DHL and Amazon volume makes that look like a possibility.
Should Memphis and Sandy Springs be paying attention and reading business changes to adapt to a well-funded intransigent competitor? Sure, absolutely! Should they be quaking in their boots at the Amazon juggernaut imminently poised to muscle them out of the logistics and delivery business? Nah....
02-12-2018, 09:01 AM
#25
Gets Weekends Off
Joined APC: Mar 2014
Posts: 176
Anybody notice the rebranding of Fed Ex Ground? FDX ground switching to FDX Express color scheme. They are building hubs and centers which some are even connected between express and ground. FDX is also building hubs next too Amazon Fullfillment centers.
I’m willing to bet FDX combines Express and Ground in the future. Start diverting Express volume into the Ground Network like UPS does. Cut their labor costs with elimination of company paid Express drivers and reduce pilot force. Continue to use subcontractor model that is in existence in FDX Ground.
So FDX will increase profit, be able to do it for less than UPS. Already have infrastructure in place near Amazon fullfillment centers to accommodate Amazon business model.
I know it sounds as far fetched as drones delivering packages😁
I’m willing to bet FDX combines Express and Ground in the future. Start diverting Express volume into the Ground Network like UPS does. Cut their labor costs with elimination of company paid Express drivers and reduce pilot force. Continue to use subcontractor model that is in existence in FDX Ground.
So FDX will increase profit, be able to do it for less than UPS. Already have infrastructure in place near Amazon fullfillment centers to accommodate Amazon business model.
I know it sounds as far fetched as drones delivering packages😁
02-12-2018, 09:21 AM
#26
Gets Weekends Off
Joined APC: Apr 2005
Position: 757/767
Posts: 1,128
Originally Posted by CaptainHvac
I would hope that UPS and Fedex (and their unions) are smart enough not to completely disregard any and all threats Amazon may provide. This is a ruthless low margin business and one of the most powerful US companies is going to take a dive into it. Right now they have terrible service, starting from almost zero, and are widely disliked, but do not underestimate the power and momentum of a $600billion company. Remember how Amazon gets into and eventually dominates market sectors....they dip a toe and chip chip chip away to strike at the perfect moment and utterly crush the competition. That moment certainly isn't now, but if you are unprepared you will lose when the time comes.
02-12-2018, 12:54 PM
#27
Gets Weekends Off
Joined APC: Feb 2007
Position: FO
Posts: 3,031
Originally Posted by Tango Uniform
Anybody notice the rebranding of Fed Ex Ground? FDX ground switching to FDX Express color scheme. They are building hubs and centers which some are even connected between express and ground. FDX is also building hubs next too Amazon Fullfillment centers.
I’m willing to bet FDX combines Express and Ground in the future. Start diverting Express volume into the Ground Network like UPS does. Cut their labor costs with elimination of company paid Express drivers and reduce pilot force. Continue to use subcontractor model that is in existence in FDX Ground.
So FDX will increase profit, be able to do it for less than UPS. Already have infrastructure in place near Amazon fullfillment centers to accommodate Amazon business model.
I know it sounds as far fetched as drones delivering packages��
I’m willing to bet FDX combines Express and Ground in the future. Start diverting Express volume into the Ground Network like UPS does. Cut their labor costs with elimination of company paid Express drivers and reduce pilot force. Continue to use subcontractor model that is in existence in FDX Ground.
So FDX will increase profit, be able to do it for less than UPS. Already have infrastructure in place near Amazon fullfillment centers to accommodate Amazon business model.
I know it sounds as far fetched as drones delivering packages��
FedEx Is Making All of Its Logos Purple and Orange, Its Most Recognized Color Scheme ? Adweek
02-12-2018, 01:00 PM
#28
Gets Weekends Off
Joined APC: May 2005
Posts: 1,273
Originally Posted by brownie
Next is carbnb to replace traditional car rentals.
www.turo.com
02-13-2018, 04:40 AM
#29
Banned
Thread Starter
Joined APC: Jan 2018
Posts: 28
Originally Posted by brownie
Exactly. ...nobody thought that one day you get into a strangers car and be treaded better for less money or I never thought I spend a night in someone's house for lot less money and double the comfort. Next is carbnb to replace traditional car rentals. Corporate America better take thier heads out of their respective asses and pay attention to what's happening.
Great rational arguments as always Boiler. Thx.
02-13-2018, 09:18 AM
#30
Banned
Joined APC: Feb 2016
Position: Enjoying the show
Posts: 296
Originally Posted by Ray Kinsella
DHL tried it and lost billions.
DHL as a whole ships more worldwide than UPS and FEDEx. Just buying DHL America would make Amazon a force. If he bought DHL and ran it right? That would be a lot of trouble for the duo. Wouldn't put them out of biz but it would hurt.
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