Should Ups Live On Concerned Most Amazon's Club Of 20,000 Vans? (Amzn; Ups)

From Louisville Business First via CNBC

Winter is coming, logistics world.

Last calendar week brought the intelligence that CNN reports that this bargain is a large saltation from the Seattle-based e-commerce company's kickoff gild of 5,000 vans. Amazon volition lease these to third-party partners, who volition operate them for last-mile delivery — basically, getting packages from a transportation hub to your house.

This is soundless around other pace inwards Amazon's plans to construct its ain delivery service, as well as it's worth watching to run across how it volition touching on United Parcel Service Inc. Amazon every bit good is allowing permit people to operate their personal vehicles for delivery inwards around cities.

Around this fourth dimension final year, I wrote almost how Amazon's excogitation for a transportation hub inwards Cincinnati could touching on UPS operations inwards Louisville. UPS's largest air sorting hub, Worldport, every bit good every bit meaning dry reason as well as Supply Chain Solutions are inwards Louisville.

Amazon, for its part, operates large distribution centers inwards Jeffersonville as well as Shepherdsville.
Typically, each of these companies does a lot of hiring to staff these operations during the vacation flavor — thence my "Game of Thrones" reference above.

The intelligence almost Amazon's delivery van buy got me thinking almost how of import that fellowship is to UPS.

Being diversified is i of UPS's strengths. It said inwards its annual written report that no unmarried client accounts for to a greater extent than than 10 per centum of its consolidated revenue. But inwards the "risk factors" department of its annual report, it acknowledges that "changes inwards our relationships alongside our meaning customers, including the loss or reduction inwards concern from i or to a greater extent than of them, could compass got an adverse impact on us."

The fellowship doesn't lift Amazon specifically. But it says around of its large customers mightiness concern human relationship for a relatively meaning percentage of revenue increment as well as — inwards talking almost run a jeopardy to its ain concern — fifty-fifty speculates that these customers could accept their book elsewhere, take away lower prices or educate their ain transportation as well as distribution capabilities....MORE