Threat of Amazon in the package delivery biz
#62
Gets Weekends Off
Joined APC: Feb 2007
Position: FO
Posts: 3,032
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.
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.
#64
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.
Namaste...
#65
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...
Namaste...
GF
#67
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.
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.
Overall, your previous post was still way off and smelled of the straw man.
#68
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.
Thread
Thread Starter
Forum
Replies
Last Post