Amazon Rather Than Leasing More Cargo Planes Should Buy UPS, Possibly FedEx.
by Anura Guruge
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>> Amazon Hoverboards ….
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>> Amazon Prime is worth it.
>> “Downton Abbey”.
>> “Mr. Selfridge”.
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Though I have always, as for as long as I can recall, been a huge fan of Amazon, and as of 2011 used them for ALL of my book publishing, it is only this year, as a fully-paid up Amazon Prime member and an AMZN stockholder that I truly started to see that Amazon is invincible — at least over the next few years. These days I am just in total awe of Amazon. Like Google they really are at the top of their game.
Given the amount of online shopping that I do with Amazon, 88 orders in the last 6 months (i.e., 14 orders a month), I know their shipping habits pretty well and, moreover, I keep them honest. IF they miss the 2-day shipping on a Prime item I call them up. So far I have had 2 months of FREE Prime and $10 of gift credit. While they do quite well with UPS outside of the Christmas window, Christmas is always a challenge — as is the number of items now getting shipped directly from China, outside of Prime. I know that AMZN dearly wants to fix that.
That they are thinking of doing some of their own shipping has been an open secret for months. Makes a lot of sense.
But to me what would make sense is for them to buy (or merge with) UPS or FedEx. I am sure UPS shareholders would LOVE IT. Their shares have been going nowhere while AMZN keeps on defying gravity. Also in terms of Market Cap AMZN is 4 times that of UPS and 8 times that of FedEx.
There will be synergies PLUS Amazon can get a piece of the eBay action! Sweet. Talking of which I am surprised that AMZN hasn’t started offering auctions. They could kill eBay (and I own eBay shares too).
So just a thought.