Amazon Quietly Confirms It Is Competing With UPS and FedEx (businessinsider.nl) 52
schwit1 shares a report from Business Insider: Amazon declared in its 2018 annual filing that it competes against transportation and logistics companies, as CNBC first reported. It's a clear warning shot against UPS and FedEx, two companies that used to claim Amazon is simply their customer. Meanwhile, Amazon CFO Brian Olsavsky told analysts last week that the retail giant will "continue to expand (its) Amazon logistics and (its) delivery capability" in 2019. Meanwhile, UPS CEO David Abney said the company "monitor(s) them (Amazon) as is if they were a competitor." And FedEx claimed, seemingly out of nowhere, last week that Amazon is not their largest competitor, claiming just 1.3% of the company's 2018 revenue.
and the USPS (Score:1)
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Yes, applaud Amazon for figuring out how to exploit the working class directly. GJ.
Re: and the USPS (Score:2, Interesting)
Welcome to the United States circa 2019, where American workers are desperate for $15 an hour shit pay gigs. At least it is just enough to have hope of the American dream, anything less and your destined to fail.
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Not until they put FedEx and UPS out of business, then they can focus on putting the other competitors out of business so they can exploit everyone from workers to producers.
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No that just plain dumb. Either one should have seized the opportunity and picked up Sears and combine logistics with retail, just like Amazon did but provide a better click and mortar solution. From producer to logistics/retail to where ever the customers is, at home, at work or coming into the store. Instant competitor, major serious competitor for Amazon.
Re: and the USPS (Score:3, Insightful)
Not a surprise at all. A friend of mine working in FedEx route management and optimization told me years ago that they could have built up their capacity to meet Amazon demands but didn't because they knew in a few years time they'd be stuck with unused capacities costing them money while Amazon would be laughing at them.
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That seems reasonable. Of course this is an AC Post. There are times where a Company will say No, to what seems like a good deal, because they know the nature of the customer.
We have seen small software and chip makers get burned by Apple because they will use your product, and get high demand from it for about a year or two, then they would drop you like yesterdays lunch left out on a summers day. Leaving the company with a large infrastructure now missing its biggest customer, and will need to go out of
Re: and the USPS (Score:4, Informative)
There's the Walmart model too. They strive to be your only customer, at which point they start demanding cheaper and cheaper prices.
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Walmart demands lower prices every year from suppliers, and it doesn't start when they're your only customer.
You understand half the problem, it is a good first step.
But even 10+ years ago, it was widely known that the same product code from the same manufacturer might actually be a different product at Walmart than other stores, because Walmart demanded lower prices, and smart manufacturers would cut extra corners for them.
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amazon will always need the post office for the 'unprofitable' rural 50% of the country... where even legions of drones won't pay for themselves and autonomous delivery vehicles would get lost or trampled by herds of cattle crossing country roads rotating pastures.
Re:and the USPS (Score:5, Insightful)
This 19.3% of the population, is mainly busy with making sure there is food on your plate, fuel for your car, heat in your home, and lumber for your building.
While these people may have a lot of money in assets, they themselves do not have a lot of money, unable to timely go to stores due to distance and their working schedules, the Internet for shopping is important to them. Increasing fees will only hurt this group of people, who makes services that we need.
Yes these people are mostly Republican Trump Supporters. However they are still the backbone to our country, and we shouldn't try to be Cruel to them, just because they may disagree with our views and sensibilities.
Amazon uses contractors to control costs (Score:1)
Not like Amazon is absorbing this cost in a negative way. They are paying contractors to deliver exclusively with Amazon. It may not negatively impact customers, but I am not sure its a good deal for contractors or drivers. I doubt the drivers make nearly as much as UPS or Fedex drivers, or provided good benefits. This is just a way for Amazon to control delivery prices.
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And those minimal costs are reflected by the poor driving habits of some of their people. I've seen multiple instances where an Amazon Prime delivery vehicle will illegally stop/park in front of a home to make a delivery facing the wrong way, and then pull out across traffic to continue in that direction. This may or may not be illegal in every jurisdiction, but it is potentially very dangerous, and I've *never* seen USPS, UPS, FedEx or any other carrier do it. I think it may be time to put a bug in the ear
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Well, hopefully they start doing small electronics (Score:5, Informative)
shipments internationally. This is now a FedEx monopoly, and FedEx is the worst of the worst, especially in places where they're using franchises.
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Weird. I use DHL for that.
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DHL, USPS, UPS all ship internationally.
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shipments internationally. This is now a FedEx monopoly, and FedEx is the worst of the worst, especially in places where they're using franchises.
Yep. Never seen an Apple Mac Pro survive being shipped by FedEx.
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Not sure why small electronics would flow through one carrier, unless maybe you are ordering things that all come from the same company and they have a contractual arrangement with FedEx?
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This is now a FedEx monopoly
All my cheap, small electronics come from China, and tend to arrive via ePacket->USPS handoff. I can't remember the last time I got anything via FedEx. I have had more problems with FedEx than any other shipper, but it's all been stuff related to the fact that they don't have distribution centers everywhere like UPS does, so if there's a problem getting a package, it becomes a BIG problem. I can't just have them send it to the local center and then go get it, there isn't one! They come from over a mounta
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Most of mine comes goes China Post -> USPS (even stuff from Singapore), but some of it goes China Post -> DHL.
ePacket might only be a service level, it is like saying "first class" instead of USPS.
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Good luck buying good quality electronic components from China. I've test-tried several times and every time they send fakes or garbage instead of the specified item.
All are subsidized by the USPS (Score:4, Interesting)
*customer (Score:2)
good; fedex and ups fucking lie about deliveries! (Score:1)
they say the package was delivered 24 hours prior, in order to beef up their stats.
they also say the package was delivered, when it never arrives!
Only a matter of time.. (Score:3)
Amazon trucks (Score:2)
They have Amazon prime delivery trucks running around my neighborhood. Amazon has a history of building something for their own use, and then offering it to the public. I can easily imagine Amazon building out their fleet of delivery trucks and offering delivery services for third parties. Competition is good, so I look forward to this development.
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Competitor? (Score:2)
That implies that ship for others. That would only apply for associate companies or whatever you call them that sell on amazon. I wouldn't call that competition. Maybe in the distant future... they might take public shipments. But for now I wouldn't call them competitors. They are simply doing the job of delivery for themselves which if they can do it for cheaper or the same they should. It also gives them leverage against traditional shippers in their price and quality of service negotiations. I can so see
Misquote? (Score:2)
Is this a misquote:
And FedEx claimed, seemingly out of nowhere, last week that Amazon is not their largest competitor, claiming just 1.3% of the company's 2018 revenue.
Sounds like he's saying that they are not their largest *customer*, which I can believe since I rarely get Fedex packages from Amazon, but doesn't say anything about them as a competitor. (and since I haven't seen any non-Amazon packages being delivered by Amazon, I'd guess that they are not a competitor at all.... yet, but could become one quickly)
I shudder when I see a TBA tracking # (Score:2)