FedEx/UPS...one way to kill Amazon Prime Air
12-05-2016, 02:02 PM
#1
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Joined APC: Oct 2011
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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
#2
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Joined APC: May 2006
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Originally Posted by Flydaplane
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
The NeverEnding Story
Joined APC: Sep 2005
Posts: 7,511
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
#10
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Joined APC: Apr 2016
Posts: 430
Originally Posted by Atrasaty
Or buy Atlas, ATSG and Kalitta and kill DHL and Amazon in one fell swoop using the spare change they have down the back of the sofa....haha....obviously not a serious suggestion before any panties get wadded.
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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