Ups Ground is competitive because fdx ground CAN'T cut more on the price. We don't have the infrastructure to handle much more volume. It's being built and once capacity is there the cost will be cut when needed. For now its make as much as we can off what we have. Just maintain volume with slow growth.
Correct that is the answer. When they get more capacity, it would only change if regionals make a serious dent. Otherwise your logic still applies, "Why take less, when you can have the same amount for more". You are right I believe, Fedex isn't there to want to take it all away from UPS asap. It's more of a long-term "chip away at the stone" approach. One slide about volume they put out, lived right in that WS sweet spot... 10% year over year growth. Even if they could get more, they rather not and simply be consistent and chip away.