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by sokoloff
1109 days ago
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There are regional parcel carriers. Two of the largest just merged (OnTrac and LaserShip). Neither of them, nor the combined, has the assets (physical vehicles/aircraft, drivers, pilots, package handlers, terminals/hubs) to take over a substantial fraction of UPS volume on a few days’ notice. And they won’t scale up ahead of obvious opportunity because if UPS settles, they’ve got a ton of previous capital stranded and employees to fire with no associated business to pay for them. |
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I took this to mean that capitalism would better work as intended if UPS was not allowed to grow to be as big as they are. They would then be a regional player themselves, one of many, and it would be easier for one or more other similarly sized companies to take over their business if they drop the ball. There would be a real competitive market.
The scenario you mentioned is the current state of affairs, where such a large company cannot be replaced, and can hold the economy hostage.