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UPS, Fedex, Amazon, and the USPS all perform last mile delivery for envelopes and packages (albeit, some of these envelopes are padded). Will these delivery ser

UPS, Fedex, Amazon, and the USPS all perform last mile delivery for envelopes and packages (albeit, some of these envelopes are padded). Will these delivery services ever converge on a single design for their vehicles?

wahern 6y ago
UPS, Fedex, and USPS have very different market niches. UPS focuses on volume, mid-market package delivery, Fedex on high-margin, next-day service, and USPS gets the dregs, including a tremendous amount of letters, not to mention junk mail. And their delivery patterns are quite different, not just the type of items delivered. I would imagine the ideal van is quite different, particularly as between UPS and USPS. FedEx and Amazon probably enjoy the most flexibility, partly because they both heavily utilize contractors for last-mile delivery. To avoid unionization FedEx has deliberately made some interesting decisions about which markets they were going to pursue and which they would cede to UPS. Amazon seems to be taking a page out of FedEx's book. In either case I imagine fleet uniformity is more difficult to achieve logistically and financially without full vertical integration of that component, and not as important when your independent contractors are absorbing much of the efficiency losses. UPS and USPS have more incentive to maximize vehicle efficiency because they directly internalize all the costs.
- mjevans 6y ago
  Before the USPS cuts Priority Mail had an interesting niche. I could pay just a tiny premium, and the packages I shipped __WOULD__ get there in 2-3 days, even cross country. That and being delivered by someone that handled the package gently, were the premium services they offered. That trash-compactor-output who ran the USPS into the ground about a year ago ruined it though, and I really hope it gets fixed up properly.
  - hinkley 6y ago
    I've had real problems with UPS off and on over the years. There was a time when Amazon.com would let you chose carrier, and it was a real problem for me when they took that away and gave the contract to UPS. An extra $3 for not having to interrupt my day to get my packages, or ever have to argue with someone that the driver repeatedly putting a not home sticker on my door WHILE I WAS HOME? Shut up and take my money.
- eru 6y ago
  Part of the market niche segmentation is that non-USPS carriers are banned from the 'dregs'.
  - ygra 6y ago
    Interesting. So no one else is allowed to deliver letters, for example? Here in Germany for example there's one or a few courier services in pretty much most larger cities that deliver "local" mail, often by bike, and usually cheaper than the Deutsche Post. So most companies having lots of local customers tend to predominantly use those, while longer-distance mail is sent via Post. It's also a bit more efficient as such things can often be presorted by the sender (into local and long-distance mail) and the local mail doesn't have to go through the sorting center that's probably a bit further away, saving basically a round-trip for letter that just go back to the same city.
    - jccooper 6y ago
      Yes. It's illegal for private carrier to delivery letters, except for "extremely urgent material". This exception allows FedEx document services and couriers... but only for express categories. You cannot send standard-speed documents via any other carrier.
      - bhupy 6y ago
        I don't know if the law has any POV on the speed of delivery, but what I do know is that the law prohibits private carriers from touching your post box (under any circumstance), so they can only deliver letters if they're shipped in a box, or a large envelope that can be left on your porch like a package.
        jccooper 6y ago
        Letter boxes are also legally protected, but that's not the main reason only USPS does letters. They could dump them on your porch like they do packages. It's because it's a legal monopoly. And no, I'm not making it up. See, for example USPS vs O'BRIEN: https://law.justia.com/cases/federal/district-courts/FSupp/644/140/1558673/ https://law.justia.com/cases/federal/district-courts/FSupp/6... ...which also handily cites the statutes.
- sbierwagen 6y ago
  >Fedex on high-margin, next-day service FedEx Express does. FedEx Ground has a separate truck fleet, and, fascinatingly, a separate president and CEO. FedEx Ship Manager prints both labels, but they have different barcodes and layouts, and you have to schedule separate pickups. One name, several different companies.

wahern 6y ago

UPS, Fedex, and USPS have very different market niches. UPS focuses on volume, mid-market package delivery, Fedex on high-margin, next-day service, and USPS gets the dregs, including a tremendous amount of letters, not to mention junk mail. And their delivery patterns are quite different, not just the type of items delivered. I would imagine the ideal van is quite different, particularly as between UPS and USPS. FedEx and Amazon probably enjoy the most flexibility, partly because they both heavily utilize contractors for last-mile delivery. To avoid unionization FedEx has deliberately made some interesting decisions about which markets they were going to pursue and which they would cede to UPS. Amazon seems to be taking a page out of FedEx's book. In either case I imagine fleet uniformity is more difficult to achieve logistically and financially without full vertical integration of that component, and not as important when your independent contractors are absorbing much of the efficiency losses. UPS and USPS have more incentive to maximize vehicle efficiency because they directly internalize all the costs.

mjevans 6y ago
Before the USPS cuts Priority Mail had an interesting niche. I could pay just a tiny premium, and the packages I shipped __WOULD__ get there in 2-3 days, even cross country. That and being delivered by someone that handled the package gently, were the premium services they offered. That trash-compactor-output who ran the USPS into the ground about a year ago ruined it though, and I really hope it gets fixed up properly.
- hinkley 6y ago
  I've had real problems with UPS off and on over the years. There was a time when Amazon.com would let you chose carrier, and it was a real problem for me when they took that away and gave the contract to UPS. An extra $3 for not having to interrupt my day to get my packages, or ever have to argue with someone that the driver repeatedly putting a not home sticker on my door WHILE I WAS HOME? Shut up and take my money.
eru 6y ago
Part of the market niche segmentation is that non-USPS carriers are banned from the 'dregs'.
- ygra 6y ago
  Interesting. So no one else is allowed to deliver letters, for example? Here in Germany for example there's one or a few courier services in pretty much most larger cities that deliver "local" mail, often by bike, and usually cheaper than the Deutsche Post. So most companies having lots of local customers tend to predominantly use those, while longer-distance mail is sent via Post. It's also a bit more efficient as such things can often be presorted by the sender (into local and long-distance mail) and the local mail doesn't have to go through the sorting center that's probably a bit further away, saving basically a round-trip for letter that just go back to the same city.
  - jccooper 6y ago
    Yes. It's illegal for private carrier to delivery letters, except for "extremely urgent material". This exception allows FedEx document services and couriers... but only for express categories. You cannot send standard-speed documents via any other carrier.
    - bhupy 6y ago
      I don't know if the law has any POV on the speed of delivery, but what I do know is that the law prohibits private carriers from touching your post box (under any circumstance), so they can only deliver letters if they're shipped in a box, or a large envelope that can be left on your porch like a package.
      - jccooper 6y ago
        Letter boxes are also legally protected, but that's not the main reason only USPS does letters. They could dump them on your porch like they do packages. It's because it's a legal monopoly. And no, I'm not making it up. See, for example USPS vs O'BRIEN: https://law.justia.com/cases/federal/district-courts/FSupp/644/140/1558673/ https://law.justia.com/cases/federal/district-courts/FSupp/6... ...which also handily cites the statutes.
sbierwagen 6y ago
>Fedex on high-margin, next-day service FedEx Express does. FedEx Ground has a separate truck fleet, and, fascinatingly, a separate president and CEO. FedEx Ship Manager prints both labels, but they have different barcodes and layouts, and you have to schedule separate pickups. One name, several different companies.