And it actually could raise prices. As Amazon has expanded into other carriers, they give the easy metro markets to the smaller carriers and give UPS and FedEx the rural areas.
Because UPS and FedEx must deliver everywhere in the US for PR/marketing/network effect reasons, they operate many of the rural areas at a massive loss, but subsidize them with metro areas which are profitable. Amazon basically is screwing them over - they might have to either raise prices or exit the market.
Because UPS and FedEx must deliver everywhere in the US for PR/marketing/network effect reasons, they operate many of the rural areas at a massive loss, but subsidize them with metro areas which are profitable. Amazon basically is screwing them over - they might have to either raise prices or exit the market.