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Amazon Will Put UPS Out of Business (Mish)

ErrosionOfAccord

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#1
https://moneymaven.io/mishtalk/economics/amazon-will-put-ups-out-of-business-iIDcV05ZLUC4X-6Ri5RCaw/
Amazon's new robot packs 600+ boxes per hour vs humans at under 200. With that announcement comes a $10K offer to quit.
Lights Out Warehouse
Please consider New Amazon Machines Pack 600 Orders Per Hour, Could Replace Thousands of Jobs.
The new machines, known as the CartonWrap from Italian firm CMC Srl, pack much faster than humans. They crank out 600 to 700 boxes per hour, or four to five times the rate of a human packer, the sources said. The machines require one person to load customer orders, another to stock cardboard and glue and a technician to fix jams on occasion.
Including other machines known as the “SmartPac,” which the company rolled out recently to mail items in patented envelopes, Amazon’s technology suite will be able to automate a majority of its human packers. Five rows of workers at a facility can turn into two, supplemented by two CMC machines and one SmartPac, the person said.
Amazon is not alone in testing CMC’s packing technology. JD.com Inc and Shutterfly Inc have used the machines as well, the companies said, as has Walmart Inc, according to a person familiar with its pilot.
“A ‘lights out’ warehouse is ultimately the goal."​
Machine in Action



Opportunity to Quit
TechCrunch reports Amazon Offers Employees $10K and 3 Months Pay If They Quit
But there's a catch. They have to start their own delivery business instead.
The retailer says it will fund startup costs up to $10,000, as well as the equivalent of three months of the former employee’s last gross salary, to give the employees the ability to get their new business off the ground without worrying about a break in pay.
Amazon said last year that people were able to start their own delivery business with only $10,000. At the time, military veterans were able to get that $10K reimbursed, as Amazon was investing a million into a program that funded their startup costs.
Employees — or any other entrepreneur — who wants to become a delivery partner, are able to lease customized blue delivery vans with the Amazon smile logo on the side, and take advantage of other discounts, including fuel, insurance, branded uniforms and more.
Delivery partners, meanwhile, could earn as much as $300,000 in annual profit by growing their fleet to 40 vehicles, Amazon claims. The company said last year it expected that hundreds of small business owners will come to hire tens of thousands of drivers across the U.S.​
Directly Competing With UPS, FedX
It's clear where this is headed: Amazon will directly compete with UPS and FedX.
If Amazon can offer retailers reduced costs and faster delivery, why wouldn't businesses take it?
Real Example
Consider what happened to me two weekends ago. I was at Arches and Canyonlands National Parks, staying at hotel in Moab, Utah.
A star tracker that I use for photographing the night sky broke. I wanted another ASAP and paid $50 extra for overnight delivery. I placed the order Thursday morning at 9:00 AM. I should have received it Friday, but didn't.
UPS does not deliver on Saturday. Prime does. I did not get my star tracker until Monday. I lost three days of being able to photograph the night sky the way I wanted.
These camera stores offer free 2-day shipping on most items.
If and when Amazon offers a deal to such places, they may be able to free one day shipping or save money on two-day shipping.
Mish Moments
Please check out my Photography Website: Mish Moments.
Union vs Non-Union
UPS is union-based with union costs and pension costs.
UPS is the single largest employer in the Teamsters Union. The UPS contract is the largest collective bargaining agreement in North America.
UPS will not be able to compete with Amazon on costs. UPS is doomed.
Mike "Mish" Shedlock
https://moneymaven.io/mishtalk/economics/amazon-will-put-ups-out-of-business-iIDcV05ZLUC4X-6Ri5RCaw/
 

Buck

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#3
One of two power sources:
Electric or Gasoline, both come with their own agenda, however, the need for additional fuel is evident, as all these 'worker bees' will flood to the 'hive' (warehouse) several times a day?, once a day?, and will wander our streets in search of an address, not necessarily being able to comprehend the idea of 'safety' as in 'be a safe driver today', that will not be priority one

Double Park, Red Zone Park, Not Going On a Green Light, all these new 'wheel-jockies' are going to clog our roads.
They vehicles won't carry as much as a truck, etc, so there will have to be more of them...besides, they don't drive for a profession, right now, they are currently warehouse workers, packers, inside building workers of some sort and definitely there are some who are that, for 'good reason'


what we see happening is an employer who is actually cutting his costs, no employees, no employee taxes, no employee liability, etc,

that makes it easier to cheerlead for higher minimum wage standards
Jeff can stay 'socially conscience'

like a divorce where he only needed to cash out 25% of his stock before the markets dipped a bit, so his pretend wife helped him do this

LOL
:belly laugh:
 

Cigarlover

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#4
I have to wonder where this is all going. So many jobs being automated so with no one working who's going to buy all the stuff? Everyone just gonna get a Gov check, smoke weed and go fishing all day?
 

tigerwillow1

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#5
I have to wonder where this is all going.
If you've seen the movie wall-e, that might be where it's going.

"In the centuries since the Axiom left Earth, its passengers have degenerated into fat, feeble slobs due to laziness and microgravity, their every whim catered to by machines. " (from wikipedia)
 

Buck

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#6
some will have to work, to fix the machines
that'll be where the money is

but, let me ask, when all these machines get here, will the cost of goods and services go down?

LOL, why the hell should they?

LOL
 

Buck

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#8
OH, fucking come on! Jeff-ri bed-pump has the feral US-male delivering on sunday….Jeffie has the fucking federal gumbyment delivering at his pleasure.

I've seen and read about that, it's gotta be something from the Communist Era, where the black dude was giving everything away to everyone except to black people

was kinda weird times iirc
 

Fatrat

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#9
The USPS should be privatized and sold.
Cool, no mail west of the Mississippi, thats right, except for a few of the bigger cities, it is not cost effective to have mail service out there...I'm willing to listen to the crying.
 
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#11