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Amazon Loosens Ties With UPS

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A longtime relationship between two allies, Amazon and UPS, has recently come under strain. WSJ's Laura Stevens discusses with Tanya Rivero. Photo: Reuterss 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 (104)
mathew mann (2 months ago)
I got hired at Amazon during Christmas 2018. We get $15 an hour! We didn't have to strike or anything! And the work is easy!
Carol Capella (2 months ago)
After the holidays, who's picking up all the returns? Not Amazon. UPS does it. Its not just all about delivery.
M S (3 months ago)
I would love to see ups get fucked by amazon but I feel for the amazon employees that work under really bad work conditions and pay I wouldn’t like to see a guy like Jeff bezo have that much power he is really getting out of control
Ali Smash (3 months ago)
Dude is literally about to take over everything.
M Craft (4 months ago)
No the real problem is UPS DRIVERS cant deliver on time or to the right address
xgx841 (7 months ago)
Look at Amazon like your kitchen. Smart shoppers always buy in bulk. More mouths to feed the more you shop at particular places to get the best bulk deals. UPS is the best bulk deal. They feed the people faster but the cost that Amazon avoids is a kid that gets sick due to bad service or the actual server getting hurt in the process. Then the parent that supervises the server is the person that gets cut. Kind of like child protective services. But the kids are like union employees. You cant just kick them out because they have no college education due to the hiring needs but give them a treat every contract to keep them happy like a I Pad. lol . So at the end of the day you get spoiled kids and somebody is stuck with hurt server and the sick kid that you cant make happy. The parent is sent to jail looking for another job.  So make the parents pay for insurance and stress them out because .......the kids are not smart enough right. Over time you get smarter with a I pad....lol
John Smith (8 months ago)
Ups and amazon is a love hate relationship on both sides both slave drivers do you really need it tomorrow just keep the cogs a turning America
Frank Martinez (8 months ago)
Ups is the king of ground services.. they been doing delivery for years.. they got the whole system running smooth..
Foxyroxy1961 (1 year ago)
So glad it won’t take long before UPS be gone
XenoByte EDM (3 months ago)
You do realize there are people that work there right? Meaning they'd lose their 401ks and overall retirement... think before you speak ignorantly.
Nod Melon (3 months ago)
lol UPS is 111 years old.. Generations of your family have lived and died in shorter amount of time than UPS has been running as a company. Perspective is a great thing to have sometimes.
Foxyroxy1961 (1 year ago)
Total business shabby go Amazon
Foxyroxy1961 (1 year ago)
Amazon is smart
XenoByte EDM (3 months ago)
Do you even have a life?
TheDay Cometh (11 months ago)
There are 3 major delivery companies in the world. DHL, FEDEX and UPS. UPS is by far the largest. UPS ain't going nowhere!
Nick T. (1 year ago)
USPS uses FedEx and UPS to move some of their packages this includes Amazon packages. They also subsidize their loses from cheaper freight charges with bulk mail profits. Not fair competition coming from the government.
Artic Archer (1 year ago)
USPS does use FedEx and UPS to help transport long distance for sure but USPS also delivers their packages to their customers in the last mile concept. Overall they are allies but also competitors.
tim gong (1 year ago)
Fuk upz
Timur Mazitov (1 year ago)
UPS sucks
MYERS MUNOZ (1 year ago)
Amazon has better delivery protocols than ups USPS and FedEx
Javier Jaime (9 months ago)
Ups items always come damaged
Russ Aman (10 months ago)
MYERS MUNOZ lol i say the opposite i rather have the UPS, FedEx, and USPS delivery protocols.
Marty Marsh (1 year ago)
Amazon would never try cutting anyone completely out, big business knows, you never put all of your eggs in one basket.
Guru La (1 year ago)
This is why I try to buy light weight items from Amazon, I don't like Ups at all. USPS deliveries all my light packages.
mr. mr (1 year ago)
it's much more cost effective to let UPS handle the bulk of Amazon shipments. You're going to try to create and manage a complex shipping operation just to ship your own goods. That's crazy. They are going to loose their shirts trying. Other online retailers will copy their business model and grow and gain ground because they will let UPS handle the complex logistical nightmare of a major shipping company. I hope those UPS employees who jumped ship get rich because in retrospect it will turn out to be the worse decision they ever made. Amazon is today's America Online. Just a few years before major players start digging into Amazon's market share.
Aten Akehnaton (8 months ago)
It's not crazy at all. The whole reason they should manage their own shipments is because of how massive their operation is. By handling this themselves they can save massive amounts of money. As for figuring out routes, computers do that now. So all they need is the equipment and manpower. Give them time. Unless someone invents a cheap teleportation device, Amazon aint going anywhere and eventually they will be shipping their own product.
Nancy Gordon (1 year ago)
I heard Amazon is buying out UPS and Fedex while also flying to the moon.
SkylineToTheSeaAndMe (1 year ago)
UPS is the worst delivery service ever and worst company to work for.
kushrant (3 months ago)
Sounds like youre broke
shhpop ES (3 months ago)
Everything I order comes broken....they throw and drop the boxes.....😕
Paul Dillon (9 months ago)
You mean the ones when you leave with a full truck and come back with it even more full? The ones where you take on unusually high loads at some places then they can't understand why you're late for another pick up time? The ones that have many packages WAY over 70 lbs and should have gone freight?
Michael Lee (1 year ago)
I can tell you a fact: Amazon has moved allot to Fed-Ex. Record year for Fed-Ex hub Alliance,Texas. Since Amazon is very close to Fed-Ex. There also using DSL..
DeeZ NutZ (2 years ago)
This is bullshit , we have at least 10+ UPS trailers every Amazon center I've picked up sooo...?
Minus ZeRo Degrees (2 years ago)
It all boils down to those damn needy stuck up customers!
Wyatt Brown (2 years ago)
I don't know how old this video is, but Amazon has already started leasing planes
jeffw1267 (2 years ago)
UPS can't handle the massive workload so we at USPS have to deal with all that bullshit. I don't need a truck jammed full of Amazon parcels as well as all the mail I have to deliver. The job is hard enough already.
tom11zz884 (1 year ago)
get another job shithead.
p A (1 year ago)
Lazy ass usps worker typical, you must work in Florida.
emconite gamez (1 year ago)
i work at UPS and we do 85,000 packages per shift so don't tell me we don't work hard.
jeffw1267 (2 years ago)
12 miles a day, 5 days per week
orlandotelevision (2 years ago)
Aww poor baby, now you have to get out of your truck and walk
Scardick85 (2 years ago)
All of you people complain about ups are bitches.yall take your lazy asses and work at a ups warehouse and see how hard the work is and maybe y'all gonna realize how the work gets done any other delivery companies have the same shit ass system FedEx,ups,etc ....
Ernesto M (1 year ago)
Scardick1 its slave labor, they work you like a dog
Aten Akehnaton (2 years ago)
UPS is awful. If you have worked their you know UPS does't give a shit. Under Paid Slaves
DOGMAN1983 (2 years ago)
Rick James (2 years ago)
The real problem is lazy ass people that think they can wait until 24 hours before Christmas and order their shit and expect the whole world to jump through hoops for them.
Chuck Maleman (3 months ago)
Rick James amen brother.im a rca for usps.amazon is placed above the 1st class mail.even...go figure
racingrb (3 months ago)
Those customers don’t even think. If it’s coming from the other side of coast and weather may cause a problem.
thegamerfrominside (2 years ago)
the welthy section is practically the only place where i run into trouble. most of them are nice but some are not.
Rick James (2 years ago)
The truth is UPS probably wishes Amazon would go away. Residential deliveries have never been profitable anyway.
Aten Akehnaton (8 months ago)
I'm familiar with how much volume they have, and that's the thing, that's just how much money they're making. You honestly don't think they'll figure out how to manage their own volume in say 10 years? I mean there was a time when UPS, Post, or FedEx were doing something special, and really had to know their business figuring out routes and training people for them, but now computers can figure out the routes and GPS is cheap. Truth is the only thing the delivery companies have going for them is size, size which built up over years. Amazon isn't that old, give them time.
Russ Aman (10 months ago)
Aten Akehnaton the company i work for is contracted with delivering Amazon packages in three major cities in our state plus 1 more city at another state. we also have guys up at Canada. An average residential route is anywhere from 180-240 stops. currently in our city alone there are at least 10 delivery companies delivering Amazon packages to include the major Delivery Providers like UPS, FedEX, and USPS. with all them combined the volume is still to high. a single warehouse average about 25,000 packages everyday. that’s just what we deliver not counting what the other 9 shippers are already doing.
Aten Akehnaton (2 years ago)
Why not? Make enough money, buy trucks, use trucks to deliver packages. Create routes, expand. Grow and develop. It's not really that complicated, especially with modern computers that can optimize routes.
jeffw1267 (2 years ago)
Amazon will NEVER be able to deliver all their own parcels. Take it to the bank. Believe me, I wish they could but for a variety of reasons they will never be able to.
Aten Akehnaton (2 years ago)
Nah UPS is in a big panic. It's more than that, it's the fear that Amazon will become the new Wallmart, and if they're shipping their own product and taking customers from other retailers that UPS delivers to, UPS is going to lose A LOT of business. Recently an Amazon distribution center opened 1 state away from our building, our building has been having record lows. I know personally I buy damn near everything through Amazon, SOOOOOO much easier than dealing with traffic and lines. Yeah I'll wait 1 or 2 days, especially when it's at a great price.
Todd Lally (2 years ago)
There is no such thing as "Free Delivery" Amazon.
Gaming Gameplay (2 years ago)
Ups is having a hard time with amazon, amazon is having a hard time with UPS while Fedex can't handle the Struggle with the Amazon, and Amazon can't work without them, shit i need my order soon as possible before this 3 Company Died!
William Buck (2 years ago)
ups needs to go out of business they suck service is shit
Byron Wake (1 year ago)
I agree and 100% support this statement
DOGMAN1983 (2 years ago)
I agree.
wkeyser0024 (2 years ago)
what shipping company doesn't...
Yankie Doodle (2 years ago)
UPS is going to break Amazon. Amazon will lose a lot of customers because of these fucks, like me.
DC Hobbyist (2 years ago)
I farted.
Waste Time (3 years ago)
Amazon is about 6% of UPS volume.
TheDay Cometh (11 months ago)
BigNick (2 years ago)
Lmao more like 50%
I Tuurtley don't even care (3 years ago)
Ups doesn't need Amazon, Amazon needs ups. FedEx can't even handle Amazon, USPS can't even handle the FedEx workload. Amazon as always wants to cut the bottom line, cut costs everywhere. But they they can't cut ups out, not for decades to come, unless they spend millions and millions. Even when they spend millions and millions, they lack the infrastructure, the man power, the decades of planning and development of routes that ups has spent a century building. The thing is ups can survive without Amazon, Amazon is a major client of ups, but as the digital market gets more saturated with Walmart, Kmart, target and several sites Just like Amazon shipping online all through UPS they going to be screwed elsewhere. This Christmas debacle was over money, Amazon wanted a cheaper rate, ups said no. Ups knows its position, they're not dumb, they know they can milk Amazon and they'll be fucked of they don't. Eventually ups won a .25 raise, that's it, Amazon is that greedy.
racingrb (3 months ago)
Just say everybody needs everybody. No one company cants handle it alone. That’s why their options choosing a service. And yeah, as of right now Amazon is a very long way to have their own transportation services. Fuels cost money.
Michael Knowles (1 year ago)
Namaste Its not that we aren't doing our job. just in my local hub we have routing to USPS. basically we pay your company to deliver the little stuff because its cheaper than having our drivers do it. when was the last time you delivered bulk to a factory? thanks but we'll take that revenue and pay USPS cents on the dollar to deliver some housewife her new pair of knockoff heels instead.
Rick James (2 years ago)
I'd be surprised if UPS makes any money off of Amazon with the cost of residential delivery so high. The Amazon thing is more about public opinion that profit.
Pete Zereeah (2 years ago)
The USPS does nearly half of all Amazons. They are partnered with them like mac and cheese. And it helps a little that USPS are Federal United States employees. The advantage the USPS has over the comp is that they do 7 days. and have more vehicles than people. They will get the package there any day.
koukimonzta (3 years ago)
postal service better. cheaper and with 7 day delivery.
kushrant (3 months ago)
Dont forget they are broke also
Yankie Doodle (2 years ago)
USPS has to give UPS discount rates when it delivers their packages so UPS can maximize profits.
Eric Ritchie (2 years ago)
The USPS doesn't actually make money. It is discount government shipping.
Peter Cuomo (3 years ago)
UPS = piece of shit
jazzyj12399 (3 years ago)
Amazon should just buy ups
Russ Aman (10 months ago)
Gabriel Alonso to bad they wouldn’t do that 2017 Amazon Laid OFF their only 20 drivers if i recall correctly. well some transferred to warehouse, some took their severance and moved on with their lives.
Gabe Ales (10 months ago)
I agree. Amazon should just acquire ups and problem solved, ups will then become one of amazons many subsidiaries
potatochip gaming (1 year ago)
UPS could buy and sell Amazon everyday to the week.
chris jimenez (2 years ago)
Tim Choderus
Trojan Virus (2 years ago)
selling rune pick axe 25k
JT Smith (3 years ago)
Competition always benefits the customer.
Frank (3 years ago)
Great, UPS is a ripoff.