Same-Day Shopping Lures FedEx as Premium Business Wanes - Bloomberg
United Parcel Service Inc. (UPS) and FedEx Corp. (FDX) are testing strategies for a same-day delivery market fueled by Web retailers trying to match the instant gratification their brick-and-mortar competitors offer shoppers.
Delivery programs under way at Internet retailers such as Amazon.com Inc. (AMZN) and Ebay Inc. (EBAY) signal an opportunity in business- to-consumer shipments for delivery firms where the high-value overnight market between companies has been hurt by a slower economy. It’s a space that larger companies have mostly ignored since the collapse of Kozmo.com Inc., which was partially backed by Amazon, in 2001.
Potential industrywide revenue from intra-city delivery of small packages in the U.S. may be as much as $12 billion, triple its size in 2007, FedEx said. While that trails the air-cargo carrier’s Express revenue of $26.5 billion last year, it has the potential to grow into a “huge boon” for FedEx and UPS, said Donald Broughton of Avondale Partners.
United Parcel Service Inc. (UPS) and FedEx Corp. (FDX) are testing strategies for a same-day delivery market fueled by Web retailers trying to match the instant gratification their brick-and-mortar competitors offer shoppers.
Delivery programs under way at Internet retailers such as Amazon.com Inc. (AMZN) and Ebay Inc. (EBAY) signal an opportunity in business- to-consumer shipments for delivery firms where the high-value overnight market between companies has been hurt by a slower economy. It’s a space that larger companies have mostly ignored since the collapse of Kozmo.com Inc., which was partially backed by Amazon, in 2001.
Potential industrywide revenue from intra-city delivery of small packages in the U.S. may be as much as $12 billion, triple its size in 2007, FedEx said. While that trails the air-cargo carrier’s Express revenue of $26.5 billion last year, it has the potential to grow into a “huge boon” for FedEx and UPS, said Donald Broughton of Avondale Partners.
