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The Latest UPS Headlines
Same-Day Shopping Lures FedEx as Premium Business Wanes
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<blockquote data-quote="cheryl" data-source="post: 1042570" data-attributes="member: 1"><p><a href="http://www.bloomberg.com/news/2012-10-18/same-day-shopping-lures-fedex-as-premium-business-wanes.html" target="_blank"><strong>Same-Day Shopping Lures FedEx as Premium Business Wanes - Bloomberg</strong></a></p><p></p><p>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. </p><p></p><p>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. </p><p></p><p>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.</p></blockquote><p></p>
[QUOTE="cheryl, post: 1042570, member: 1"] [URL="http://www.bloomberg.com/news/2012-10-18/same-day-shopping-lures-fedex-as-premium-business-wanes.html"][B]Same-Day Shopping Lures FedEx as Premium Business Wanes - Bloomberg[/B][/URL] 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. [/QUOTE]
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