Discussion in 'FedEx Discussions' started by ReverseThrusters, Jun 7, 2019.
Senior mgr announced today Amazon is gone for good. We haven't had any all week.
They are gone for good, at least at my station.
We were told the same thing this morning. We were told we didn’t make much off of them and they were cherry picking the dense areas and only using Fedex for the outlying areas.
They should have cut them loose the second they announced they were going to become a competitor.
Ups is too stupid to do the same
Chances of them doing it now are much higher now that Fedex did.
June 30 is the final day. Fedex didn’t renew Amazon’s contract because they didn’t accept the pricing.
Pretty obvious. Why continue to deliver packages for a competitor, helping to put yourself out of business, that you’re making very little money off of
Because it would be like Target loaning the Walmart next door cash register tape so they can stay open for business.
It isn’t in their own best interest.
Actually Fedex said ADIOS to Amazon
Only domestic express. Does not include international or ground.
"“FedEx has made the strategic decision to not renew the FedEx Express US domestic contract with Amazon.com, Inc., as we focus on serving the broader e-commerce market,” reads FedEx’s statement, released publicly on Twitter by CNBC journalist Carl Quintanilla. “This decision does not impact any existing contracts between Amazon.com and other FedEx business units or relating to international services.” So it seems as if Amazon will still use FedEx for shipping in some circumstances, although we don’t know how large of a chunk of the two companies’ business dealings involved FedEx Express."
Amazon loses contract with FedEx Express as it builds out competing delivery network
Makes me feel queasy, but I agree. If fedex has excess capacity, and makes even modest profit, then delivering is srill a good decision. If fedex can slowly shed excess capacity, then it will make more sense to drop a paying customer. With more and more retailers getting into delivering- like Walmart and Target- fedex would not want to cut capacity, and later have to add it back. So at this point, why should fedex drop Amazon where it is still making a profit. It isn't like Fred S is working overtime, or losing money.
Actually, if fedex is making ANY profit off Amazon, giving it up is MORE likely to 'put yourself out of business.'
For years, whenever we have a VP or MD at the station, they have told us Fedex does not make much off of Amazon.
Do you prefer minimum wage, or $25-30/hr?
Is there a third option?
My point was, Amazon revenue is minimum wage. Aim higher.
Amazon needn't worry---I'm sure their fleet of delivery drones is ready to take up the slack.
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