So this is a rather niche question so I hope it is still relevant to this group, but I was thinking. The big package transport companies(in the US this is UPS and FedEx) make most of their air cargo money on overnight packages, where the business model is pretty straightforward. Have packages fly between a small number of hubs each night so you can relatively economically cover large areas with overnight service, because each plane is as full as it can be. The better question is how the same air cargo operation can transport the same packages in two days while being so much cheaper that they can charge 1/3 the cost of overnight. I can come up with a few ways, such as driving the package to a further away airport so you can put it on only 1 flight, or trying to drive it to a big hub before flying it, but all of these business models seem questionable at best because they seem to apply to niche cases only. Does anyone with more knowledge of the subject know the answer?

  • phillaholic
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    fedilink
    61 year ago

    Not to hijack, but I’ve been wondering how Amazon’s deliveries can possibly be optimized at all. On Monday I received three packages from three different drives at three different times of the day. A fourth van was spotted 30 mins after my last delivery still in my neighborhood. FedEx at most has their ground / express separation and priority delivery that they charge handsomely for. What the heck is Amazon doing?