Amazon Starts Flexing Muscle in New Space (reuters.com)
A cargo plane emblazoned with "Prime Air" descended from an empty sky at Lehigh Valley International Airport on Tuesday, ninety minutes from the bustle of New York City, loaded with crates of goods during the peak holiday shopping season. From a report on Reuters: It's one of 40 jets leased by Amazon.com Inc for a new cargo service to meet delivery demand from the retail giant's customers. Exclusive payload data reviewed by Reuters and interviews with airport officials around the country show that Prime Air planes are flying nearly full, but with lightweight loads, taking away valued business from FedEx Corp and United Parcel Service Inc. Expanding into transportation, from trucks to planes, is one of Amazon's most important endeavors as it strives to lure new customers with fast shipping while keeping costs under control. The world's largest online retailer is sending more packages, more often, and later in the day to serve its estimated 35 million to more than 50 million U.S. members of Amazon Prime, a service that promises two-day shipping for $99 per year.
Sooner or later Amazon has to start paying dividends...
FedEx and UPS suck. It is not Amazon's responsibility to keep them afloat.
This move is a rare one in corporate America, it puts their customers first.
50 million customers at $99 a pop really adds up to nice Christmas for Amazon.
I tried to order something from Amazon to deliver to a local Amazon Locker. No can do. It's full. As are the half-dozen Amazon Lockers in the surrounding area. No space, no delivery. Oh, well. I'll my business elsewhere.
Amazon Starts Flexing Muscle in New Space
New Space: When Flexing Muscle in Old Space just isn't going to cut it anymore.
I mean... you gotta Flex Muscle somewhere...
My eyes reflect the stars and a smile lights up my face.
Amazon is still pretending to be a tech stock when they should be a dividend-paying blue chip stock?
To pay dividends you need to be kicking off lots of spare cash. Amazon has never fit that description once in their existence. They reinvest pretty much all profits back into growing the company.
Amazon + ten years = Buy n Large?
Religion: The greatest weapon of mass destruction of all time
They'll just air-drop it from 35,000 ft..
I've always thought Amazon's strategy was: "Let's buy another company to distract the shareholders from the fact that we don't have any profits to our name."
Amazon could have fairly substantial profits today if they really cared to. But that would be rather short sighted of them. I've done the analysis on their financial statements. The company actually kicks off a fair bit of free cash flow but they are plowing most of it back into various investments. Some sensible, some not so much. They are no longer some fly by night dotcom.
Hardly surprising when you consider the fact that Amazon will send out a pack of AAA batteries in a 36"x24"x6" box with 2 more boxes inside it.
I'm an Amazon prime member in rural Montana. FedEx and UPS get my 2-day shipments to me in 2 business days from the time they get the package almost every time, barring bad weather. I rarely have any problems with either service.
Amazon, however, has within the last year been failing to get 2-day air out within 24 hours (and sometimes quite a bit longer) of when the item is ordered. So "Prime 2-day" delivery can be 3- or 4- or 5-day delivery. It used to be that if I ordered early in the morning, say 9 AM my time or earlier, they'd get the package to the shipper that day. So I could order Monday morning, and the goods would arrive Wednesday. Since this is the main reason I have Prime — I shop a lot on Amazon, and the free 2-day shipping means (used to mean) a lot less waiting on this end — I'm considering dropping Prime this year. Ordering Monday morning, and receiving the goods Friday or even the next Monday... that's not worth $99/year. Or more.
Prime membership was great for me for years in a row; not so much any longer. Plus a lot of items are now "add-on" items, so I don't get the shipping advantage unless I buy things I wasn't planning to buy, or coincidentally was buying anyway.
Like most corporations, Amazon seeks to trim costs because shareholders aren't satisfied with just doing well, they require constant growth, or at least, the appearance of growth. Those costs will be trimmed at the expense of customer service if the corporation thinks they can get away with it. It's one of the faults with the "invest in shares for increase in share value" model as opposed to the "invest in shares to receive dividends" model. I'm pretty sure this is exactly what I've been seeing in the last year or so.
I've fallen off your lawn, and I can't get up.
I went to retrieve a package from a UPS truck that had pulled up in front of my house. It was remarkable to see that nearly every box in the truck had an Amazon logo.
UPS especially, are famous for damaging parcels.
This happens mostly at airport handling, where the handlers are pretty much immune to discipline.
I am sure Amazon would like to make customers happy and reduce returns due to damage.
The Motley Fool put Amazon around 5 % of UPS, and 4% of FedEx (http://www.fool.com/investing/general/2015/12/13/is-amazoncom-about-to-take-on-fedex-and-ups.aspx) a year ago when this first came up.
Having watched UPS deliver a package and Amazon deliver a package. UPS drivers are well trained and know what they are doing. Amazon drives look like they are figuring it out with each box they deliver. Amazon may get there someday as this is a solvable problem if they spend enough money on it. The question is will the Amazon deliveries be enough to warrant the expense.
The first people establishing connection to parallel universe will be (i) Mexican drug cratels, to delivery drugs and (ii) Amazon, to deliver the rest.