Amazon Quietly Confirms It Is Competing With UPS and FedEx (businessinsider.nl)

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Amazon Quietly Confirms It Is Competing With UPS and FedEx (businessinsider.nl)

Posted by BeauHD on Saturday February 9, 2019 @01:00AM from the shots-fired dept.

schwit1 shares a report from Business Insider: Amazon declared in its 2018 annual filing that it competes against transportation and logistics companies, as CNBC first reported. It's a clear warning shot against UPS and FedEx, two companies that used to claim Amazon is simply their customer. Meanwhile, Amazon CFO Brian Olsavsky told analysts last week that the retail giant will "continue to expand (its) Amazon logistics and (its) delivery capability" in 2019. Meanwhile, UPS CEO David Abney said the company "monitor(s) them (Amazon) as is if they were a competitor." And FedEx claimed, seemingly out of nowhere, last week that Amazon is not their largest competitor, claiming just 1.3% of the company's 2018 revenue.

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and the USPS by OffTheLip · 2019-02-09 01:11 · Score: 1

Amazon is working toward not needing any of them. Most of my Amazon deliveries lately have been by their drivers in white vehicles.
1. Re:and the USPS by TFlan91 · 2019-02-09 01:12 · Score: 2, Insightful
  
  Yes, applaud Amazon for figuring out how to exploit the working class directly. GJ.
2. Re: and the USPS by Anonymous Coward · 2019-02-09 02:13 · Score: 3, Insightful
  
  Not a surprise at all. A friend of mine working in FedEx route management and optimization told me years ago that they could have built up their capacity to meet Amazon demands but didn't because they knew in a few years time they'd be stuck with unused capacities costing them money while Amazon would be laughing at them.
3. Re:and the USPS by Anonymous Coward · 2019-02-09 02:17 · Score: 1
  
  amazon will always need the post office for the 'unprofitable' rural 50% of the country... where even legions of drones won't pay for themselves and autonomous delivery vehicles would get lost or trampled by herds of cattle crossing country roads rotating pastures.
4. Re: and the USPS by jellomizer · 2019-02-09 02:50 · Score: 1
  
  That seems reasonable. Of course this is an AC Post. There are times where a Company will say No, to what seems like a good deal, because they know the nature of the customer.
  We have seen small software and chip makers get burned by Apple because they will use your product, and get high demand from it for about a year or two, then they would drop you like yesterdays lunch left out on a summers day. Leaving the company with a large infrastructure now missing its biggest customer, and will need to go out of business. Where if they didn't pick Apple as a customer, they probably would have a steady growth because you would have more smaller customers, and could tolerate the smaller number of sales fluctuation.
  
  --
  If something is so important that you feel the need to post it on the internet... It probably isn't that important.
5. Re:and the USPS by jellomizer · 2019-02-09 02:57 · Score: 4, Insightful
  
  This 19.3% of the population, is mainly busy with making sure there is food on your plate, fuel for your car, heat in your home, and lumber for your building.
  While these people may have a lot of money in assets, they themselves do not have a lot of money, unable to timely go to stores due to distance and their working schedules, the Internet for shopping is important to them. Increasing fees will only hurt this group of people, who makes services that we need.
  Yes these people are mostly Republican Trump Supporters. However they are still the backbone to our country, and we shouldn't try to be Cruel to them, just because they may disagree with our views and sensibilities.
  
  --
  If something is so important that you feel the need to post it on the internet... It probably isn't that important.
6. Re: and the USPS by Anonymous Coward · 2019-02-09 04:20 · Score: 2, Interesting
  
  Welcome to the United States circa 2019, where American workers are desperate for $15 an hour shit pay gigs. At least it is just enough to have hope of the American dream, anything less and your destined to fail.
7. Re:and the USPS by raftpeople · 2019-02-09 05:13 · Score: 1
  
  When FedEx and UPS deliver packages that's just normal business, but when Amazon delivers packages, that's exploiting the working class?
8. Re:and the USPS by dryeo · 2019-02-09 06:19 · Score: 1
  
  Not until they put FedEx and UPS out of business, then they can focus on putting the other competitors out of business so they can exploit everyone from workers to producers.
  
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  https://en.wikipedia.org/wiki/Inverted_totalitarianism
9. Re: and the USPS by dryeo · 2019-02-09 06:24 · Score: 3, Informative
  
  There's the Walmart model too. They strive to be your only customer, at which point they start demanding cheaper and cheaper prices.
  
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  https://en.wikipedia.org/wiki/Inverted_totalitarianism
10. Re: and the USPS by Aighearach · 2019-02-09 08:03 · Score: 1
  
  Walmart demands lower prices every year from suppliers, and it doesn't start when they're your only customer.
  You understand half the problem, it is a good first step.
  But even 10+ years ago, it was widely known that the same product code from the same manufacturer might actually be a different product at Walmart than other stores, because Walmart demanded lower prices, and smart manufacturers would cut extra corners for them.
11. Re:and the USPS by rtb61 · 2019-02-09 15:26 · Score: 1
  
  No that just plain dumb. Either one should have seized the opportunity and picked up Sears and combine logistics with retail, just like Amazon did but provide a better click and mortar solution. From producer to logistics/retail to where ever the customers is, at home, at work or coming into the store. Instant competitor, major serious competitor for Amazon.
  
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  Chaos - everything, everywhere, everywhen
Amazon uses contractors to control costs by Anonymous Coward · 2019-02-09 01:30 · Score: 1

Not like Amazon is absorbing this cost in a negative way. They are paying contractors to deliver exclusively with Amazon. It may not negatively impact customers, but I am not sure its a good deal for contractors or drivers. I doubt the drivers make nearly as much as UPS or Fedex drivers, or provided good benefits. This is just a way for Amazon to control delivery prices.
1. Re:Amazon uses contractors to control costs by Anonymous Coward · 2019-02-09 05:35 · Score: 1
  
  And those minimal costs are reflected by the poor driving habits of some of their people. I've seen multiple instances where an Amazon Prime delivery vehicle will illegally stop/park in front of a home to make a delivery facing the wrong way, and then pull out across traffic to continue in that direction. This may or may not be illegal in every jurisdiction, but it is potentially very dangerous, and I've *never* seen USPS, UPS, FedEx or any other carrier do it. I think it may be time to put a bug in the ear of the local constabulary, as I'm sure after a few tickets, the Amazonians will get the hint.
2. Re: Amazon uses contractors to control costs by edris90 · 2019-02-09 07:44 · Score: 2
  
  That's because they are contractors, therefore they are free to make that risk assessment for themselves and if caught may have to pay a fine. If you're willing to pay the fine you get to do the crime, you have to play the odds right you get to do it for free. That Has always been the US business culture relationship with legality. As long as successful industry leaders continue to thrive by this model, individuals will continue to percieve it as THE way to succeed in this country
Well, hopefully they start doing small electronics by Mr.+Dollar+Ton · 2019-02-09 01:53 · Score: 4, Informative

shipments internationally. This is now a FedEx monopoly, and FedEx is the worst of the worst, especially in places where they're using franchises.
Re:Well, hopefully they start doing small electron by Anonymous Coward · 2019-02-09 02:24 · Score: 1

Weird. I use DHL for that.
All are subsidized by the USPS by Sqreater · 2019-02-09 03:07 · Score: 3, Interesting

All dump mail that is not lucrative to deliver or cannot be delivered by them into the massive United States Postal Service. Fleas. They will never "not need" the USPS. Only the USPS delivers practically every day to every address in the United States.

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E Proelio Veritas.
Re:Well, hopefully they start doing small electron by Anonymous Coward · 2019-02-09 03:15 · Score: 2, Interesting

DHL, USPS, UPS all ship internationally.
Re:Well, hopefully they start doing small electron by Anonymous Coward · 2019-02-09 03:30 · Score: 1

shipments internationally. This is now a FedEx monopoly, and FedEx is the worst of the worst, especially in places where they're using franchises.
Yep. Never seen an Apple Mac Pro survive being shipped by FedEx.
*customer by 14erCleaner · 2019-02-09 03:33 · Score: 1

Fedex said Amazon is not it's biggest customer, not competitor.

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Have you read my blog lately?
good; fedex and ups fucking lie about deliveries! by Anonymous Coward · 2019-02-09 03:43 · Score: 1

they say the package was delivered 24 hours prior, in order to beef up their stats.
they also say the package was delivered, when it never arrives!
Only a matter of time.. by Daemonik · 2019-02-09 03:51 · Score: 2

Been saying for a while now it's only a matter of time before Amazon starts offering to ship your packages through their network just like UPS & FedEx. Once you've built up all that backend, it only makes sense to use it to capacity, even if you're carrying packages that didn't originate at an Amazon facility.
Amazon trucks by onyxruby · 2019-02-09 04:03 · Score: 1

They have Amazon prime delivery trucks running around my neighborhood. Amazon has a history of building something for their own use, and then offering it to the public. I can easily imagine Amazon building out their fleet of delivery trucks and offering delivery services for third parties. Competition is good, so I look forward to this development.
Re:Well, hopefully they start doing small electron by Anonymous Coward · 2019-02-09 04:31 · Score: 1

I've seen plenty. I've delivered them. By "Seen Plenty" means the box is intact, not torn, and not crushed. If apple skimps on packing materials, thats their problem
Re:Who is Amazon's MCI by TheRealMindChild · 2019-02-09 05:17 · Score: 1

Walmart directly competes with Amazon

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"When life gives you lemons, don't make lemonade. Make life take the lemons back!" -- Cave Johnson
Re:Well, hopefully they start doing small electron by raftpeople · 2019-02-09 05:21 · Score: 2

As of 2017, DHL's market share for global parcel delivery was 38% compared to FedEx at 24%. When we ship to consumers internationally we go through DHL due to their coverage. We only use FedEx when shipping internationally to our own distribution centers and retail stores.

Not sure why small electronics would flow through one carrier, unless maybe you are ordering things that all come from the same company and they have a contractual arrangement with FedEx?
Re:Well, hopefully they start doing small electron by drinkypoo · 2019-02-09 05:44 · Score: 1

This is now a FedEx monopoly
All my cheap, small electronics come from China, and tend to arrive via ePacket->USPS handoff. I can't remember the last time I got anything via FedEx. I have had more problems with FedEx than any other shipper, but it's all been stuff related to the fact that they don't have distribution centers everywhere like UPS does, so if there's a problem getting a package, it becomes a BIG problem. I can't just have them send it to the local center and then go get it, there isn't one! They come from over a mountain range where I live now, and where I lived last, they were both over a mountain range and in a different county.

--
"You're right," Fisheye says. "I should have set it on 'whip' or 'chop.'"
Competitor? by BlueCoder · 2019-02-09 05:53 · Score: 1

That implies that ship for others. That would only apply for associate companies or whatever you call them that sell on amazon. I wouldn't call that competition. Maybe in the distant future... they might take public shipments. But for now I wouldn't call them competitors. They are simply doing the job of delivery for themselves which if they can do it for cheaper or the same they should. It also gives them leverage against traditional shippers in their price and quality of service negotiations. I can so see them doing the same for truck shipments.
Misquote? by hawguy · 2019-02-09 07:08 · Score: 1

Is this a misquote:

And FedEx claimed, seemingly out of nowhere, last week that Amazon is not their largest competitor, claiming just 1.3% of the company's 2018 revenue.
Sounds like he's saying that they are not their largest *customer*, which I can believe since I rarely get Fedex packages from Amazon, but doesn't say anything about them as a competitor. (and since I haven't seen any non-Amazon packages being delivered by Amazon, I'd guess that they are not a competitor at all.... yet, but could become one quickly)
Re: Weird (Amazon) cars showing up by edris90 · 2019-02-09 07:52 · Score: 1

I bet that woke Everybody up, and got them to thinking in real time for a while.. the worry is only because you are out of practice. So that you're in the practice of paying attention and analyzing your surroundings. Consider it a blessing in disguise.
Re:Well, hopefully they start doing small electron by Aighearach · 2019-02-09 08:11 · Score: 1

Most of mine comes goes China Post -> USPS (even stuff from Singapore), but some of it goes China Post -> DHL.
ePacket might only be a service level, it is like saying "first class" instead of USPS.
I shudder when I see a TBA tracking # by ayesnymous · 2019-02-09 18:41 · Score: 1

That means it's shipped by Amazon's delivery service and there's a good chance it'll get lost. They're worse than UPS, which is pretty bad.
Re:Well, hopefully they start doing small electron by Mr.+Dollar+Ton · 2019-02-10 18:55 · Score: 1

Good luck buying good quality electronic components from China. I've test-tried several times and every time they send fakes or garbage instead of the specified item.