With the creation of Amazon’s own air cargo operation, will its old cargo partners see a decrease in revenue? This Bloomberg article explains it clearly.
https://www.bloomberg.com/features/2016-amazon-delivery/?bcomanews
I think it will. What do you think?
No, FedEx is too strong.
I think UPS is stronger (better customer service, etc.). So they would have a better chance than FedEx.
They’re too different. FedEx handles third-party purchases, while Amazon handles stuff only bought on their site.
Yeah, but fedex is a secondary option. None of United, American, and Delta are going out of business because the other 2 are there right?
FedEx used to handle Amazon Shipping though.
Not a chance, Amazon’s operation is too small. The E-Commerce market is a lot more than just Amazon too, FedEx and UPS still has quite a market.
Yeah, but that is just a small portion of their traffic, they also handle eBay, Newegg, etc.
Whilst I have no doubt the Amazon freight airline could become quite large (Jeff Bezos doesn’t do things unless he can scale them up)… the other carriers will survive and thrive.
The Amazon business was important, but not critical to their operations.
No, eBay is handled by the USPS in the United States.
Not for long distance, I’m pretty sure. USPS only has trucks.
But think about it in like 10 years, Amazon could cause them to loose a lot of money.
Why would they? Prime air will only be good for a few cities and routes. Amazon does not have the distribution network and cannot build a distribution network with their market to pose a threat.
“The United States Postal Service does not directly own or operate any aircraft or trains, although both were formerly operated. The mail and packages are flown on airlines with which the Postal Service has a contractual agreement. The contracts change periodically. Depending on the contract, aircraft may be painted with the USPS paint scheme. Contract airlines have included: UPS, Emery Worldwide, Ryan International Airlines, FedEx Express, American Airlines, United Airlines, and Express One International.”
Basically FedEx is getting revenue via contract running stuff operated by FedEx and other companies.
I think the bigger business highlight is the story on Amazon’s side. Now they won’t be paying another company to handle a portion of their shipping. They’ll be paying themselves essentially.
That is what I said.
If Fedex go out business, it will be the end of the world.
Why? Just use UPS if that happens.
I use UPS all the time but im saying the world would look plain without them white trucks and white planes going everywhere.
