Watch out, FedEx and UPS: Amazon’s decision to offer shipping services to any and all business customers is already impacting the longtime delivery giants.
Until recently, only Amazon and its partner companies had access to the company’s trucks, airplanes, and storage. But in May, the company announced that it was launching Amazon Supply Chain Services, which will allow any business, regardless of its affiliation with Amazon, to use its shipping and storage capabilities.
Jack McCrum, director of optimization and analytics at parcel shipping intelligence platform Reveel, told Supply Chain Dive last week that Amazon is clearly targeting UPS and FedEx with its new strategy.
“They’re aggressively just going after UPS and FedEx right now, just to carve out that market share, and they’re willing to negotiate on that revenue per piece,” he said.
Amazon has been offering rates that are competitive with, or lower than, the services offered by FedEx and UPS, according to Retail Dive, citing experts working in shipping contracts.
I remember when PM Megan J. Brennan was giving speeches to Postmasters about how doing business with Amazon was going to save the USPS financially… It turns out Amazon used the USPS’s generous discounts to build their own delivery system which has now hurt the USPS bottom line. The way PM Brennan talked about Amazon I would have thought she would change the sonic eagle to the Amazon smile as the new postal symbol. Never trust Amazon not to do things in their own best interests.
How much did she make behind the scenes??
One of the worst contracts ever??
She was a horrible PMG???
Flat sorters, with no flats??
Losing money on every amazon parcel????
Don’t forget Ron Stroman a current member of
the BOG was her second in command?
It’s all in inside job???
I always wondered why Amazon never bought
either UPS or Fedex???
They had existing structure in place and
vehicles and drivers?? Would have been cheaper.
But, Amazon is a crooked company,
That treats employees awful. Never understood how
they get help. Heard once, they recruited recently
released prisoners from a medium security prison
in CA????