UPS is going out of business, too. UPS owns warehouses, trucks, and planes, none of which are very defensible advantages. Like the companies I listed, they're a

UPS is going out of business, too. UPS owns warehouses, trucks, and planes, none of which are very defensible advantages. Like the companies I listed, they're a network effect company. Those companies are going away because bigger networks can be formed on the global computer by anyone who wants to participate—warehouse owners, truck drivers, bike messengers, etc. UPS gives Amazon a good deal because they push so much volume, and it's way easier to sell to one company than it is to sell to millions of them. But the global computer makes it feasible to directly connect every producer with every consumer—it won't be hard to sell to millions of them. If a shipper needs guaranteed future business, customers can band together and put a contract for lower prices on the global computer that enforces a payment or reputation penalty if a minimum spending limit isn't reached. Decentralization gives everyone the economies of scale that once required the backing of a megacorporation. Most of the advantages of scale are reducible to middleman-free interactions on the global computer.