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my guess is that UPS will eat their lunch. this is UPS's core business. they prob weren't doing what Amazon needed them to do partially because they have other
by wAllDueRespect 10y ago
my guess is that UPS will eat their lunch. this is UPS's core business. they prob weren't doing what Amazon needed them to do partially because they have other customers and partially because Amazon likely wanted too much from them based on what Amazon was willing to pay. Amazon will likely place onerous requirements on sellers to squeeze pennies out of the shipping process. and then, eventually, when more of commerce has converted to the mail-delivered model, and UPS is making a profit, and Amazon realizes that they're throwing good resources after bad in an experiment gone wrong, they'll get back to focusing on selling stuff and out of the business of delivering stuff.
- tracker1 10y agoEven if Amazon only does last mile delivery to locations with warehouse facilities (which will probably be everywhere with a large airport), and only does the deliveries from said warehouses to customers in the local region, it's still probably worth it for them to take over that aspect. I don't know that last mile out to smaller areas will ever be worth it for Amazon.
- shambala 10y agoJust because it's UPS core business doesn't mean UPS is doing it right. Merchandising was Sears' core business. Heck, the airlines' core business is air transportation, and plenty of them have gone out of business/merged in the last few years. Also don't forget that UPS is a union ship, with very expensive union contracts. The UPS is the largest individual employer in the Teamsters Union. https://teamster.org/upsupsf-contract-updates/ups-agreements-2013-2018 https://teamster.org/upsupsf-contract-updates/ups-agreements...