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Threat of Amazon in the package delivery biz

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Old 02-14-2018, 04:11 PM
  #61  
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There’s a possibility that a meteorite will take out the superhub tonight and I’ll be out of a job when I wake up, but I’m not gonna lose any sleep over that either.
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Old 02-14-2018, 06:19 PM
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How do the plan on making it substantially cheaper? Delivery is an amiazingly capital instensive business. Planes, sort facilities and all the other associated support equipment cost a lot of money. And they likely won’t have much of an advantage here as pretty much everyone is going to pay market rates for infastructure.

They can try to save on labor/automate or they can subsidies shipping from the rest of their business just to try and drive competitors out of business and hope not to cause harm to thier core business. UPS and FDX will likely innovate to keep pace and find ways to cut cost.

Doing it cheaper isn’t a given.
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Old 02-15-2018, 07:14 AM
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Originally Posted by BlueMoon View Post
Doing it cheaper isn’t a given.
Yep. I agree with this.
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Old 02-15-2018, 10:29 AM
  #64  
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Originally Posted by No Land 3 View Post
People said Elon Musk couldn’t do the things he has done, and will continue to do. The doubters need to accept that it is a possibility. The driving force in all of this is the consumer. If I can send a package through Amazon for half the price UPS and FedEx charged, guess what? There’s always pilots willing to fly a 767 for less than what Brown/Purple, and Connie are paying. Brown and Purple being competitive will do what they need to do. Pilot pay may or may not be affected, but Bezos WILL find his pilots.
For the number of aircraft required to fill the hub in CVG, Amazon will need to get pilots to choose to fly the Amazon aircraft, instead of going to DAL/AA/UAL/SWA/UPS/FedEx. This means the contract to fly the Amazon planes will have to be, on average, better than the contracts for the big 6.

Namaste...
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Old 02-15-2018, 11:15 AM
  #65  
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Originally Posted by atpcliff View Post
For the number of aircraft required to fill the hub in CVG, Amazon will need to get pilots to choose to fly the Amazon aircraft, instead of going to DAL/AA/UAL/SWA/UPS/FedEx. This means the contract to fly the Amazon planes will have to be, on average, better than the contracts for the big 6.

Namaste...
Have you thought your position through? There will be droves of guys who will fly for Amazon as a stepping stone to the big leagues; especially if regionals really shrink. There are tons of 135 guys who will jump at it.

GF
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Old 02-15-2018, 03:20 PM
  #66  
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Originally Posted by Tumbl3weed View Post
DHL never understood the first 10 minutes of “Castaway”...time will tell if Bezos is a Tom Hanks fan
Excellent statement! I agree.
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Old 02-15-2018, 06:07 PM
  #67  
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Originally Posted by METO Guido View Post
Efforts to politicize or equate conservative values as anti-labor are misguided.
Nope. Not at all. To say there is no political component to labor is intellectually dishonest at best. History speaks for itself and your biases has no effect on such.

Originally Posted by METO Guido View Post
The uniformed, full time with benefits delivery worker at UPS, FDX or USPS is in the cross hairs of a business strategy designed to dramatically lower cost through advanced IT management of piece work contracting in process areas where automation is not yet possible.

The story of transportation is, hand in glove, a story of organized labor. If AMZN is to change that, they're going to need a bigger Death Star.
First of all, FDX mostly uses contractors for its “last mile” delivery, and unfortunately, they are typically non-union. UPS delivery drivers are all union. Otherwise, I agree with the rest.

Overall, your previous post was still way off and smelled of the straw man.
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Old 02-15-2018, 07:17 PM
  #68  
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Originally Posted by Jurassic Jet View Post
Amazon could pay cash for 100 brand spanking new 767s, 15,000 delivery vehicles and all the ground support equipment and still have 2/3rds of their current cash on hand in the bank.
Great, but FedEx has 660 airplanes, many of them able to haul more than a “brand spanking new 767.” They also have 90,000 vehicles, and 220,000 people. Amazon would need to not only match that, but do it overnight. Then, sustain the operation in a multi billion a year loss state until they build up a customer base that makes money. Not to mention Amazon has done nothing innovative that makes it more efficient than FedEx/UPS, so it will cost the same to run their operation. The entire company has made only 2 billion in 2016, it’s highest profit ever! They could pull all their boxes off FedEx, but FedEx would only lose at most 3% of their revenue and be left with loads of bulk space for higher margin boxes from other retailers.

So go ahead amazon, spend your entire worth on building a network overnight, attempt to sustain it thru your low margin sales. We’ll see how long that will last.
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Old 02-15-2018, 08:21 PM
  #69  
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Amazon also delivers on Sundays...
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Old 02-16-2018, 03:12 AM
  #70  
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Maybe Amazon will buy FedEx.......stranger things have happened in this industry.
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