FedEx/UPS...one way to kill Amazon Prime Air
12-05-2016 | 02:02 PM
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FedEx/UPS...one way to kill Amazon Prime Air
They should have announced two months ago that due to the direct competition Amazon Prime Air was going to be that they would not deliver any overnight or two day shipments for them this year. People would stop shipping via Amazon. Don't think Prime has enough a/c yet to survive on it's own this year (especially with current ABX issues). This could devastate Amazon right at their peak time. UPS/Fedex could then negotiate with Bezos a 10 year deal with no compete clause. The short term losses for the quarter they would see by refusing shipments would be offset by the long term stability of the 10 year no compete. They could effectively kill off the competition before it starts to affect them.
12-05-2016 | 02:05 PM
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They should have announced two months ago that due to the direct competition Amazon Prime Air was going to be that they would not deliver any overnight or two day shipments for them this year. People would stop shipping via Amazon. Don't think Prime has enough a/c yet to survive on it's own this year (especially with current ABX issues). This could devastate Amazon right at their peak time. UPS/Fedex could then negotiate with Bezos a 10 year deal with no compete clause. The short term losses for the quarter they would see by refusing shipments would be offset by the long term stability of the 10 year no compete. They could effectively kill off the competition before it starts to affect them.
12-05-2016 | 02:17 PM
#3
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FedEx/UPS...one way to kill Amazon Prime Air
...besides collusion issues, it would likely breach existing shipping contracts.
I have reason to believe Amazon volume on browntails has done nothing but increase in 2016, even as Prime Air started adding dedicated tails.
I have reason to believe Amazon volume on browntails has done nothing but increase in 2016, even as Prime Air started adding dedicated tails.
12-08-2016 | 11:33 AM
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It's funny you say that, I've always wondered why the merger movement never took off on the freight side of the industry. Seems like it would be beneficial to some of the acmi carriers.
I don't see UPS making a move like that but wouldn't surprise me to see a few large ACMI's come together
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