[jaynos]

>Amazon doesn't need to compete directly with UPS and Fedex to win.

Taking some of the deliveries allows Amazon to threaten to take more (or all) of them and pressures UPS and FedEx into keeping down the rates they charge Amazon.

[bitJericho]

It could just cause them to not accept any amazon packages.

[BinaryIdiot]

Considering Amazon makes up over a $1 billion of UPS's revenue you think they may just stop accepting Amazon's business even if Amazon starts cutting how much they use them? There's no way. They will keep their business until the bitter end because if they don't their competitors will and Amazon can generate a lot of volume for them.

[sgnelson]

If it leads to losses, then yes, UPS would drop Amazon in a heartbeat.

[BinaryIdiot]

Why would they start operating the Amazon account at a loss? They would likely lower the volume discount if the volume drops but I don't understand your point.