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Amazon’s Shipping Empire Is Challenging UPS and FedEx

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Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#21

Post by rerx »

TazeTSchnitzel wrote: post #8

It's good for Amazon, but is it good for consumers? Isn't a postal service something of a natural monopoly — the more competing services there are, the less efficient each is, because instead of one vehicle with one load of deliveries, you have two or more vehicles with fractions of that amount? It's certainly not good for the environment at least.

I feel delivery companies should bid for providing service for the last couple of kilometers, then the winner should get an exclusive contract for some time frame. That's how it's done for other services like regional rail public transport.

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#22

Post by ulfw »

jpalomaki wrote: post #20
Shivetya wrote: post #17

I just find it amazing that Amazon found it more profitable to buy tens of thousands of delivery vehicles and build a service from the ground up than to find better deals through the available shippers. Now I see their trucks nearly as often as Fed Ex and UPS.

Maybe they see value also in being able to fully control the customer experience. Your trusted Amazon delivery guy could fill your fridge while you supervise him through Amazon branded devices.

There is no trusted Amazon delivery guy. It's independent contractors mostly.

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#23

Post by TheSoftwareGuy »

TazeTSchnitzel wrote: post #8

It's good for Amazon, but is it good for consumers? Isn't a postal service something of a natural monopoly — the more competing services there are, the less efficient each is, because instead of one vehicle with one load of deliveries, you have two or more vehicles with fractions of that amount? It's certainly not good for the environment at least.

I think there is enough packages to be delivered that you would more likely have two trucks with full loads anyways. These companies aren't making any shipments with anything less than a full truck, I'm sure of it

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#24

Post by mytailorisrich »

larzang wrote: post #18
mytailorisrich wrote: post #11

Earlier quoted context omitted.

Natural monopoly means that it's not possible for more than one supplier to survive. This is clearly not the case for packages delivery. For consumers the more suppliers the better.

Consumers benefit assuming all suppliers are equivalent, which is not at all the case with Amazon. They're gaining a price advantage over using real carriers mainly through incredibly exploitative labor practices in the warehouse and abusing uber-like contractors to cover the last mile for pennies on the dollar. Not only is the human/societal cost high, consumers directly suffer as well as untrained contractors worki…

Consumers benefit because of competition and redundancy several suppliers create.

Competition forces suppliers whose service is deemed inadequate by the market to change or disappear.

Clearly the market wants packages delivered fast and cheap.

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#26

Post by rerx »

TheSoftwareGuy wrote: post #23
TazeTSchnitzel wrote: post #8

It's good for Amazon, but is it good for consumers? Isn't a postal service something of a natural monopoly — the more competing services there are, the less efficient each is, because instead of one vehicle with one load of deliveries, you have two or more vehicles with fractions of that amount? It's certainly not good for the environment at least.

I think there is enough packages to be delivered that you would more likely have two trucks with full loads anyways. These companies aren't making any shipments with anything less than a full truck, I'm sure of it

But surely they would rather have one truck service a shorter route than have two trucks service the same longer route if it leads to the same overall utilization rate.

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#27

Post by rerx »

rerx wrote: post #21
TazeTSchnitzel wrote: post #8

It's good for Amazon, but is it good for consumers? Isn't a postal service something of a natural monopoly — the more competing services there are, the less efficient each is, because instead of one vehicle with one load of deliveries, you have two or more vehicles with fractions of that amount? It's certainly not good for the environment at least.

I feel delivery companies should bid for providing service for the last couple of kilometers, then the winner should get an exclusive contract for some time frame. That's how it's done for other services like regional rail public transport.

Did I hit a nerve by picking public transport as an example? If it does not work out, regulations are bad. Competing non cooperating infrastructure service providers are a bad idea if they hinder each other.

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#28

Post by thesuperbigfrog »

devoply wrote: post #2

I could see a future where Amazon does general shipping like FedEx as a side business to subsidize its real business.

"Transportation By Amazon" (TBA) has been a concept at Amazon since around 2010 or so. Originally the concept was that Amazon would accept shipments from business customers and inject those shipments into Amazon's sorting and shipping network using the rates negiotated with various carriers.

Since most of Amazon's negiotated rates with carriers are lower than what carriers offer to consumers directly, customers get lower prices and would benefit from Amazon's scale and customer service.

Now with Amazon's own transportation network finally taking off, Transportation By Amazon has gone from a concept that would have relied exclusively on third-party carriers (e.g. UPS, FedEx, USPS, etc.) to a likely reality with primary reliance on Amazon's infrastructure and supported by third-party carriers where Amazon does not have a robust prescence.

Re: Amazon’s Shipping Empire Is Challenging UPS and FedEx

#29

Post by pwython »

Shivetya wrote: post #17

I just find it amazing that Amazon found it more profitable to buy tens of thousands of delivery vehicles and build a service from the ground up than to find better deals through the available shippers. Now I see their trucks nearly as often as Fed Ex and UPS.

I live in a South Florida county that has about 2 million people. I've never seen an Amazon truck before? The only shipped-by-Amazon deliveries I've received were from people in their own cars.
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