Threat of Amazon in the package delivery biz
02-13-2018, 10:47 AM
#31
Polyester Pilot
Joined APC: Mar 2011
Position: 777 CA
Posts: 510
I've not seen this in print and there are a ton of problems to the plan but I don't think that with Amazons money they are insurmountable. Why not buy the USPS off the US government. If you commit to home mail delivery staying as it is for let's say 30 or more years and keeping the workforce that is there Amazon would receive a turn key operation that already delivers to every address in the USA and it's territories.
The US government keeps home delivery for every citizen and rids itself of a burden that it hasn't really wanted since the 1980's or earlier. It also eliminates overnight the pension expense in the Federal budget of all of those retired mail workers.
While the cost would be high to Amazon they have the market capitalization to pull it off. With a Republican president and congress now would be a great time to push for privatization.
Some people, especially older Americans who rely more heavily on snail mail to do business might fight it but much like Amtrak does the federal government really need to be in the mail or rail business in the digital era?
The US government keeps home delivery for every citizen and rids itself of a burden that it hasn't really wanted since the 1980's or earlier. It also eliminates overnight the pension expense in the Federal budget of all of those retired mail workers.
While the cost would be high to Amazon they have the market capitalization to pull it off. With a Republican president and congress now would be a great time to push for privatization.
Some people, especially older Americans who rely more heavily on snail mail to do business might fight it but much like Amtrak does the federal government really need to be in the mail or rail business in the digital era?
02-13-2018, 11:17 AM
#32
Gets Weekends Off
Joined APC: Jun 2006
Posts: 2,227
Originally Posted by sky jet
I've not seen this in print and there are a ton of problems to the plan but I don't think that with Amazons money they are insurmountable. Why not buy the USPS off the US government. If you commit to home mail delivery staying as it is for let's say 30 or more years and keeping the workforce that is there Amazon would receive a turn key operation that already delivers to every address in the USA and it's territories.
The US government keeps home delivery for every citizen and rids itself of a burden that it hasn't really wanted since the 1980's or earlier. It also eliminates overnight the pension expense in the Federal budget of all of those retired mail workers.
While the cost would be high to Amazon they have the market capitalization to pull it off. With a Republican president and congress now would be a great time to push for privatization.
Some people, especially older Americans who rely more heavily on snail mail to do business might fight it but much like Amtrak does the federal government really need to be in the mail or rail business in the digital era?
The US government keeps home delivery for every citizen and rids itself of a burden that it hasn't really wanted since the 1980's or earlier. It also eliminates overnight the pension expense in the Federal budget of all of those retired mail workers.
While the cost would be high to Amazon they have the market capitalization to pull it off. With a Republican president and congress now would be a great time to push for privatization.
Some people, especially older Americans who rely more heavily on snail mail to do business might fight it but much like Amtrak does the federal government really need to be in the mail or rail business in the digital era?
02-13-2018, 11:26 AM
#33
Polyester Pilot
Joined APC: Mar 2011
Position: 777 CA
Posts: 510
I don't see anything that bans a third party from delivering the mail as long as congress continues to monitor that delivery. There are contract mail carriers all over rural America. This would be the same thing only on a massive scale. There could still be a Postmaster General and staff to make sure the third party maintains the minimum service while they are maximizing the rest of the operation.
I get almost nothing in the mail that I could not receive digitally. As a tax payer I am all for privatization of services that the private sector could do better and cheaper.
I get almost nothing in the mail that I could not receive digitally. As a tax payer I am all for privatization of services that the private sector could do better and cheaper.
02-13-2018, 03:14 PM
#34
Line Holder
Joined APC: Feb 2018
Posts: 27
Originally Posted by Jason605
DHL didn't actually "try it" though. When DHL bought Airborne, they didn't listen to Airborne. The Germans wanted to do it their way. Had they listened to Airborne, I think the landscape today would have been much more different.
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.
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.
02-13-2018, 05:24 PM
#35
Gets Weekends Off
Joined APC: Apr 2016
Posts: 293
No one will ever compete with Purple or Brown by doing it on the cheap and trying to undercut. Both DHL and Amazon despise employees and thus contract out as much as possible to the lowest bidder and I don't think they are capable of changing their business model. FedEx and UPS have frontline EMPLOYEES with skin in the game and it seriously shows when comparing the ramp operations in MEM, SDF and CVG. And I have flown using all three call signs.
02-14-2018, 02:23 AM
#38
Gets Weekends Off
Joined APC: Apr 2005
Position: 757/767
Posts: 1,128
Originally Posted by clb2vnav
Amazon won't compete with anyone if the ACMIs think they can continue to offer low QOL and low pay with no work rules. There will be no one to staff the planes.
02-14-2018, 02:41 AM
#39
Gets Weekends Off
Joined APC: May 2012
Posts: 400
Originally Posted by FTFFv2
The comparison isn’t logical here: Amazon isn’t attempting to do anything revolutionary with package delivery. A spattering of last mile gig-economy delivery guys isn’t going to change the game and personally, I won’t ship if I know it’s going to arrive with one of these guys - had a couple of bad experiences.
02-14-2018, 04:42 AM
#40
Polyester Pilot
Joined APC: Mar 2011
Position: 777 CA
Posts: 510
Originally Posted by Tumbl3weed
Agree; BUT, right now it appears Amazon is making the same mistakes DHL made...first and foremost, using ACMI carriers may be cheaper, but you get what you pay for. If they ever want to compete with UPS/FEDEX they need to have direct control of the airline. On time performance failures will not be tolerated by US business customers(as DHL found out in less than 2 years) and will soon wear thin with the door to door consumers. DHL never understood the first 10 minutes of “Castaway”...time will tell if Bezos is a Tom Hanks fan
I can hear the peanut gallery now. But, but, but UPS brought it in house because the contract guys couldn't do it to their standards. The ACMI carriers of today are nothing like the ones in the 1980's. But, but, but the FAA wont let them operate this way because of operational control. Again, not the 1980's. We gave had 30 years now of the majors effectively controlling the regionals and the FAA hasn't stepped in. The political climate is far different today also.
Trust me, our German Overlords know how to move freight, on time, anywhere in the world. Yes they made a mistake in the US years ago. But I wouldn't bet on them repeating it.
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