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Amazon Could Soon Compete with UPS and FedEx

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To reduce shipping costs, Amazon is building up its own delivery operation, as some say the online retailer is preparing to go head-to-head with major shippers in the mainstream delivery business. WSJ's Lee Hawkins explains. Subscribe to the WSJ channel here: http://bit.ly/14Q81Xy More from the Wall Street Journal: Visit WSJ.com: http://www.wsj.com Follow WSJ on Facebook: http://www.facebook.com/wsjvideo Follow WSJ on Google+: https://plus.google.com/+wsj/posts Follow WSJ on Twitter: https://twitter.com/WSJvideo Follow WSJ on Instagram: http://instagram.com/wsj Follow WSJ on Pinterest: http://www.pinterest.com/wsj/ Don’t miss a WSJ video, subscribe here: http://bit.ly/14Q81Xy More from the Wall Street Journal: Visit WSJ.com: http://www.wsj.com Visit the WSJ Video Center: https://wsj.com/video On Facebook: https://www.facebook.com/pg/wsj/videos/ On Twitter: https://twitter.com/WSJ On Snapchat: https://on.wsj.com/2ratjSM
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Text Comments (37)
Z (8 months ago)
Naturally, Kmat, Sears,Walmat, they all start off as catalog mom and pop stores. Sears even buildt the Sears Towers. However, retailers never go into the shipping business. So No!
Aten Akehnaton (4 months ago)
Yeah look at all the good that did for them. Saving money by shipping their own product and being more convenient for costumers isn't a negative.
super marioz (8 months ago)
no amazon is starting to use an uber like scam where they get a bunch of random people and give them packages to deliver with not paying hourly or gas or providing cars some uber lyft type of buisness
Bain Wheeler (3 months ago)
racingrb There are multiple factions that deliver for them. Amazon Flex, USPS, Second Samuel Transport (my company), Railcrew etc
racingrb (3 months ago)
Bain Wheeler it was Sunday afternoon. Saw this Toyota Corolla in my neighbor driveway. He had bunch of boxes in backseat and front passenger seat pretty stack up. Saw him digging in and took one pkg out. Saw different drivers few more times on Sunday during the month.. Dude had Uber/Lyft stickers on car too.
Bain Wheeler (3 months ago)
super marioz Wrong. I deliver for Amazon and we have our own vans.
Frank Budroux (9 months ago)
Good luck..It took Ups 110 years to get where they are now, It goes more into it than just delivering..
Aten Akehnaton (4 months ago)
Where they are now? A company that destroys far too many of it's costumers packages? Yeah right. You're also missing the big difference. Amazon isn't just making money from shipping it's also making money from retail, UPS doesn't do this unless you count the joke of a business asset that is the UPS Store. Jeff Bezos is worth 150 billion plus dollars. Trust me he can afford it.
Novaximus (10 months ago)
Notice they never say "compete with USPS" who does more packages than any of them.
Kevin Lemmerman (5 months ago)
+Novaximus ?
Novaximus (5 months ago)
everyone in the business of package delivery @Kevin.
Kevin Lemmerman (5 months ago)
+Novaximus who cares
Novaximus (8 months ago)
I can't wait til Amazon delivers their own packages last mile everywhere. The last 10 years have been brutal. Xmas every damned day.
Novaximus (8 months ago)
USPS 2017 year total 5.7 Billion  (source https: //facts.usps.com/table-facts / Ups year 2017 total  5.1 Billion (source UPS Fact Sheet)Numbers don't lie.  AND the USPS has to handle mail which is like 70% of the job.  I should know I'm a mailman.  Pretty close though and yeah...I know.  You guys deliver the big stuff which does tip those scales a lot.  But …..  there ya go
TheDay Cometh (11 months ago)
It will cost Amazon billions of dollars and many years of planning to match the infrastructure of UPS, FEDEX and DHL.
Aten Akehnaton (3 months ago)
If UPS did why can't Amazon? With that, they have years and billions so........yeah
Zow Err (10 months ago)
It will take decades. UPS is an international shipping company that has built their logistical network and fleet of ships, planes, trucks and delivery vehicles over the course of a century. If Amazon thinks they can simply buy their way to the top they are sadly mistaken.
Glock Nyneteen (1 year ago)
Amazon is worth 250 billion dollars but it doesn't pull nearly the kind of profit due to having so much competition. FedEx 1.8 b profit, amazon 2.5 b profit, ups 3.4 b profits. Amazon has far more revenue combined than these 2. Amazon affects their delivery drivers greatly but at a cost. Amazon employees aren't very happy with their poor wages and its going to be hard to have a good company without that.
Timur Mazitov (1 year ago)
UPS sucks.
coolgamer17 (2 months ago)
Aten Akehnaton you get 6 weeks each year
coolgamer17 (2 months ago)
Timur Mazitov u suck
racingrb (3 months ago)
Have a good driving record, try to pass defensive driving, pass physical and pass reading maps test, too
Aten Akehnaton (4 months ago)
+Zow Err also prepare to work 10 plus hours everyday with very few days off. Say goodbye to your home life if you have one. Also be prepared to do work that doesn't in any way fulfill you as a human being.
Zow Err (10 months ago)
Practice driving a manual transmission, then reapply and pass the driving test to get a high paying job as a UPS driver.
mr. mr (1 year ago)
Not going to happen
Jay Bizz (1 year ago)
I just can't wait to see Amazon drop FedEx.!!!!!!
racingrb (3 months ago)
Jay Bizz amazon only do retail delivery. FEDEX has business and residential delivery/pickups.
Pernection (2 years ago)
Shikhir Singh (2 years ago)
is good
Genetic Freak (2 years ago)
It's rapidly becoming the biggest company in the world besides Apple, why not deliver your own packages instead of relying on a third party? Seems only natural to me.
Muhammad Idrees (2 years ago)
That drone delivery 1:40 is great idea..
Cross (2 years ago)
Muhammad Idrees too bad most ppl live in areas that aren't air friendly (trees, buildings, phone/cable lines, etc) also most ppl would probably steal the content the moment they see a small lil drone flying around or land...in a city...it's a no go
Russell Lee (2 years ago)
thats amazing
melonbarmonster (2 years ago)
Amazon delivery services is not as good as USPS, UPS or Fedex at least for me in the NYC/NJ region.
melonbarmonster (2 years ago)
mahesh katta late deliveries. Inconsistent delivery times. Less professional staff. All other carriers I know who they are and know when they're coming. Amazon I shelter skelter. Often I don't see them and get message that they couldn't make delivery or they'll try to deliver after 5pm when office closes.
mahesh katta (2 years ago)
What do you mean by NOT GOOD, is it late or doesnt give delivary notifications.