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>Amazon doesn't need to compete directly with UPS and Fedex to win. Taking some of the deliveries allows Amazon to threaten to take more (or all) of them and p
by jaynos 10y ago
>Amazon doesn't need to compete directly with UPS and Fedex to win.
Taking some of the deliveries allows Amazon to threaten to take more (or all) of them and pressures UPS and FedEx into keeping down the rates they charge Amazon.
- bitJericho 10y agoIt could just cause them to not accept any amazon packages.
- BinaryIdiot 10y agoConsidering Amazon makes up over a $1 billion of UPS's revenue you think they may just stop accepting Amazon's business even if Amazon starts cutting how much they use them? There's no way. They will keep their business until the bitter end because if they don't their competitors will and Amazon can generate a lot of volume for them.
- sgnelson 10y agoIf it leads to losses, then yes, UPS would drop Amazon in a heartbeat.
- BinaryIdiot 10y agoWhy would they start operating the Amazon account at a loss? They would likely lower the volume discount if the volume drops but I don't understand your point.