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Why would Amazon care if they damaged their reputation with Fedex and UPS? They can just do what UPS and Fedex do when it is too expensive to deliver a package

Why would Amazon care if they damaged their reputation with Fedex and UPS? They can just do what UPS and Fedex do when it is too expensive to deliver a package somewhere -- turn it over to the USPS. Amazon is already using USPS to deliver packages on Sundays, which is win-win-win. Amazon wins, USPS wins, and the consumers win. Amazon's home delivery seems to work well where it's been rolled out, and I don't see competitive barriers to rolling it out elsewhere. I think the article fails to cover a lot of areas where Amazon will have a competitive advantage over UPS and Fedex. First of all, Amazon will be vertically integrated. They can control the packaging. They can control which warehouses are used to store items. This could lead to better packing efficiency in delivery vehicles, and could make automated loading of vehicles easier. If you have a particular route that is usually 110% full or 40% full, you could either move more items to that warehouse or take some away. Plus, Amazon can incentivize cheaper shipping options dynamically. Will the marginal cost of this order be incredibly high because you'll need a second truck for a particular route? Discount one day shipping, or offer two day shipping to their work instead. On top of all that, Amazon doesn't have unionized employees. That's a huge advantage when you are trying to reduce costs. Not only are their employees wages probably less, but they also don't have contracts that reduce planning ability, like fixed routes, etc. (The above is my comment on this post yesterday, though the post failed to get traction. I think it's probably still relevant 24 hours later)

freehunter 10y ago
When I was in an apartment I hated it when USPS got my package. When I wasn't home, they'd take it back to the post office which meant I had to then drive to the post office, at a time when they were open (which conflicted with my working hours). UPS or FedEx would leave it at the office. Now that I'm in a house, I much prefer USPS if only because my post man comes by at 9am and UPS/FedEx don't come by until 2-3pm.
- ghostly_s 10y ago
  I've had the exact opposite experience in every apartment I've lived in (like....10 now?). And USPS typically has a postal key to the entryway so they can leave packages inside. The best case scenario with FedEx has always been that they may ring a bunch of buzzers randomly before leaving the package on the doorstep and driving off.
mikeryan 10y ago
On top of all that, Amazon doesn't have unionized employees. That's a huge advantage when you are trying to reduce costs. Not only are their employees wages probably less, but they also don't have contracts that reduce planning ability, like fixed routes, etc. There's no realistic way to reduce costs being non-union shop in what is traditionally a unionized business. Either the shop will organize on its own or you run the shop to union standards in an effort to stave off organization.
- shambala 10y ago
  Wal-Mart? Hardly union standards, and never been able to successfully organize.
  - sangnoir 10y ago
    Is Walmarts business "traditionally unionized"? You might have missed that crucial prior in GPs statement. Additionally, Walmart actively discourages unionization via propaganda during training and outright threats. If Reddit is to be believed, closing an entire outlet is not too big a price to stave off the specter of unionization.
    - ethbro 10y ago
      Between Walmart and Amazon, I'd rather have Amazon win, but at some point we're going to optimize away all the on the ground jobs. Less of a deal for cities, but some of the small towns I drive through for work don't seem to have any other employment than trades/Walmart/service/trucking/maybe "the local plant". What kind of world are we creating for small towns when 2.5 of those disappear in the next few decades?
      - deleted 10y ago
        [deleted]
      - ericd 10y ago
        Maybe there's not much of a world for small towns? Perhaps the only people who will live outside of big cities at some point will be remote workers looking to get away from so many people. The Caves of Steel series sees all of terrestrial humanity living in huge hives, for example, with only robots outside of those, doing all the farming and mining.
snowwrestler 10y ago
USPS is good for last-mile delivery, especially outside cities, because they are legally mandated to serve every address. But the USPS also contracts with UPS and Fedex for backhaul capacity. It's not unusual for a UPS truck to pull up to a Post Office and drop off a bunch of mail, which is then delivered to the address by the postal carrier.

freehunter 10y ago

When I was in an apartment I hated it when USPS got my package. When I wasn't home, they'd take it back to the post office which meant I had to then drive to the post office, at a time when they were open (which conflicted with my working hours). UPS or FedEx would leave it at the office. Now that I'm in a house, I much prefer USPS if only because my post man comes by at 9am and UPS/FedEx don't come by until 2-3pm.

ghostly_s 10y ago
I've had the exact opposite experience in every apartment I've lived in (like....10 now?). And USPS typically has a postal key to the entryway so they can leave packages inside. The best case scenario with FedEx has always been that they may ring a bunch of buzzers randomly before leaving the package on the doorstep and driving off.

mikeryan 10y ago

On top of all that, Amazon doesn't have unionized employees. That's a huge advantage when you are trying to reduce costs. Not only are their employees wages probably less, but they also don't have contracts that reduce planning ability, like fixed routes, etc. There's no realistic way to reduce costs being non-union shop in what is traditionally a unionized business. Either the shop will organize on its own or you run the shop to union standards in an effort to stave off organization.

shambala 10y ago
Wal-Mart? Hardly union standards, and never been able to successfully organize.
- sangnoir 10y ago
  Is Walmarts business "traditionally unionized"? You might have missed that crucial prior in GPs statement. Additionally, Walmart actively discourages unionization via propaganda during training and outright threats. If Reddit is to be believed, closing an entire outlet is not too big a price to stave off the specter of unionization.
  - ethbro 10y ago
    Between Walmart and Amazon, I'd rather have Amazon win, but at some point we're going to optimize away all the on the ground jobs. Less of a deal for cities, but some of the small towns I drive through for work don't seem to have any other employment than trades/Walmart/service/trucking/maybe "the local plant". What kind of world are we creating for small towns when 2.5 of those disappear in the next few decades?
    - deleted 10y ago
      [deleted]
    - ericd 10y ago
      Maybe there's not much of a world for small towns? Perhaps the only people who will live outside of big cities at some point will be remote workers looking to get away from so many people. The Caves of Steel series sees all of terrestrial humanity living in huge hives, for example, with only robots outside of those, doing all the farming and mining.

snowwrestler 10y ago

USPS is good for last-mile delivery, especially outside cities, because they are legally mandated to serve every address. But the USPS also contracts with UPS and Fedex for backhaul capacity. It's not unusual for a UPS truck to pull up to a Post Office and drop off a bunch of mail, which is then delivered to the address by the postal carrier.