UPS Unfazed by Reports Amazon Is Weighing In-House Delivery Service Launch
UPS is unfazed by reports that Amazon is getting closer to launching its own in-house delivery service, said CEO David Abney on a Wednesday earnings call. “It’s not uncommon for large companies to make decisions to in-source or outsource portions…
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of their transportation network,” said Abney. “So this certainly did not surprise us. It absolutely increases their supplemental growth capacity.” Though Amazon executives will “have to speak for themselves,” existing partners like UPS “remain a very important part of their business model,” he said. “We closely monitor all of our customers, especially our larger customers, and any competitor announcements. We're not going to be naïve or ignore things that people or entities are doing. We really evaluate all market moves, and the impact that it'd have on our core business, and we feel very comfortable in our ability to compete in our core businesses.” The value proposition “is very difficult to match,” said Abney. “We will continue to be the best-in-class e-commerce vendor of choice.” Amazon didn’t comment.