> It is reported that Amazon had offered to increase its shipping volumes with UPS to meet growing delivery demands.
> However, UPS declined, opting instead to adjust its operations for higher profitability. “Due to their operational needs, UPS requested a reduction in volume and we certainly respect their decision,” said Amazon spokesperson Kelly Nantel.
Given the Teamsters are endorsing these views, I wouldn’t be so quick to jump to conclusions. Amazon is building an internal UPS competitor. UPS may simply not want to over-extend itself.
If I were to wildly speculate, Amazon is happy to give shipping partners as much low margin volume as they're willing to take. UPS has higher labor costs because they have union workers, while Amazon does not. To your point, the Teamsters are fine with this because their members have a contract and labor protections from arbitrary cuts. ~70% of UPS' 443k employees are represented by the Teamsters' Union, per UPS' website.
An average UPS driver pulls ~$100k, with some getting close to $170k. Amazon delivery network humans are not approaching this comp and benefits. That is a material component of the profitability spread imho.
Is this what it means to "Feel the AGI"?
Turns out throwing billions at unsolved science does not solve it. You should never use Amazon Prime to pre order the Singularity...
https://supplychaindigital.com/logistics/why-ups-slashing-am...
> It is reported that Amazon had offered to increase its shipping volumes with UPS to meet growing delivery demands.
> However, UPS declined, opting instead to adjust its operations for higher profitability. “Due to their operational needs, UPS requested a reduction in volume and we certainly respect their decision,” said Amazon spokesperson Kelly Nantel.
It's plain ol' reach for more profits.
Given the Teamsters are endorsing these views, I wouldn’t be so quick to jump to conclusions. Amazon is building an internal UPS competitor. UPS may simply not want to over-extend itself.
If I were to wildly speculate, Amazon is happy to give shipping partners as much low margin volume as they're willing to take. UPS has higher labor costs because they have union workers, while Amazon does not. To your point, the Teamsters are fine with this because their members have a contract and labor protections from arbitrary cuts. ~70% of UPS' 443k employees are represented by the Teamsters' Union, per UPS' website.
An average UPS driver pulls ~$100k, with some getting close to $170k. Amazon delivery network humans are not approaching this comp and benefits. That is a material component of the profitability spread imho.
https://www.cbsnews.com/news/ups-drivers-170000-pay-benefits...
https://about.ups.com/us/en/newsroom/negotiations/media-fast...