Amazon says "ADIOS" to Express?

[fedx]

More capacity coming on every day. Slowing economic growth. Not enough boxes to go around. At least not enough good stuff to go around. Now you guys have been throwing out there every possible outcome except the one staring you right in the face......... A rate war......And the first shots could be fired when the next X quarterly report comes out later this month. As for X stock I saw one target price as low as 136.

So do you think this could affect our upcoming raises in October? First Express had problems integrating TNT, now they can say they don't have Amazon anymore. What are your thoughts? I can tell you one thing, if they don't give us a raise, I can see a ton of RTDs leaving for greener pastures. Not the topped out old timers, but the guys who are almost a decade away from being topped out. They really need to do something for RTDs as it is right now. We can't seem to keep them where I'm at.

 

[zeev]

Ditto I have trained many and they have all left! All RTD’s not topped out need to look around immediately it’s not going to get better.

 

[Fixxxer]

Seems to be the same with couriers too. I know you need to look at the big picture that FedEx is a worldwide company but with how busy it is for us in North America not getting a raise when it feels like peak never ended is going to piss a lot of people off

 

[HedleyLamarr]

It seems that management is taking this on the chin. They took a 5% pay cut last year, and I was told they will take another pay cut this year.

 

[Code 82 Approved]

Amazon's service to my house gets worse and worse. Even as a Prime member 6/10 have arrived a day late or more recently. When I call to bitch, I explain I control what gets delivered to their building inbound... And I'm going to leave their delivery in a sticker bush and piss on it and do it a day or 2 late

My kid sent me a father's day gift early and the driver quit at 20:00 one house away.

The Amazon model is working.

 

[MAKAVELI]

Amazon's service to my house gets worse and worse. Even as a Prime member 6/10 have arrived a day late or more recently. When I call to bitch, I explain I control what gets delivered to their building inbound... And I'm going to leave their delivery in a sticker bush and piss on it and do it a day or 2 late

My kid sent me a father's day gift early and the driver quit at 20:00 one house away.

The Amazon model is working.

Sounds just like Ground.

 

[dezguy]

Amazon's service to my house gets worse and worse. Even as a Prime member 6/10 have arrived a day late or more recently. When I call to bitch, I explain I control what gets delivered to their building inbound... And I'm going to leave their delivery in a sticker bush and piss on it and do it a day or 2 late

My kid sent me a father's day gift early and the driver quit at 20:00 one house away.

The Amazon model is working.

Do you really think the phone jockey, making minimum wage with no benefits, cares?

 

[SmithBarney]

Amazon's service to my house gets worse and worse. Even as a Prime member 6/10 have arrived a day late or more recently. When I call to bitch, I explain I control what gets delivered to their building inbound... And I'm going to leave their delivery in a sticker bush and piss on it and do it a day or 2 late

My kid sent me a father's day gift early and the driver quit at 20:00 one house away.

The Amazon model is working.

Every time I complain about late service I get a free month of Prime... so far about 1 year free.

 

[Purple no more]

Personally, I say good bye and don't let the door hit you where the good Lord split ya... as an Ops, Amazon was always a pain. They were demanding, asking for lower rates, never coming through with their promises of volume. Amazon thinks that they rule the world.

 

[McFeely]

 

[59 Dano]

The post office is going to exist whether we assist them or not. They were here before us. We also have the empty airplanes during the day to shuttle the mail around, so it makes sense to maximize what we have.

To assist another private, non-governmental enterprise to profit, learn about what we do, mimic what we do, and then directly compete... and then give them one hell of a rate while letting them run us into the ground possibly failing our other customers..... nah.

LOL!! Dude, profit is profit. A few months of additional Amazon volume isn't going to make or break either company and Amazon sure wasn't going to learn anything in those months that they didn't already know.

That's why they said it was only 1% or so of our revenue in Frontline? I was expecting a bigger number than that, honestly.

In that case, we got $96 MILLION from Amazon in FY'18... and that's just Express.

 

[Fred's Myth]

In that case, we got $96 MILLION from Amazon in FY'18... and that's just Express.

Gross or net?

How much capacity did we invest in to handle that volume, and how much did it cost?

 

[Cactus]

LOL!! Dude, profit is profit. A few months of additional Amazon volume isn't going to make or break either company and Amazon sure wasn't going to learn anything in those months that they didn't already know.



In that case, we got $96 MILLION from Amazon in FY'18... and that's just Express.

Go tell someone who cares.

 

[SmithBarney]

In that case, we got $96 MILLION from Amazon in FY'18... and that's just Express.

But you really need to break it down further, did we carry 96 Million packages?(I think we carried a lot more than that) then we only "made" $1 per package, not including operation costs.
Compare it to another company lets say company Y where we yield $2 per package, but they ship half as much.

Of course FDX isn't going to share these numbers, bottom line is FDX-E wasn't making enough per package from AMZ, FDX probably tried to increase costs, and AMZ wouldn't budge(or maybe they wanted even cheaper) so FDX said bye bye

 

[59 Dano]

Gross or net?

How much capacity did we invest in to handle that volume, and how much did it cost?

Gross revenue. How much did we invest to handle that 1% of our gross volume? I'd venture... not much.

 

[59 Dano]

But you really need to break it down further, did we carry 96 Million packages?(I think we carried a lot more than that) then we only "made" $1 per package, not including operation costs.
Compare it to another company lets say company Y where we yield $2 per package, but they ship half as much.

Of course FDX isn't going to share these numbers, bottom line is FDX-E wasn't making enough per package from AMZ, FDX probably tried to increase costs, and AMZ wouldn't budge(or maybe they wanted even cheaper) so FDX said bye bye

Express gross revenue for FY'18 was $9.6 billion. Amazon represents 1% (or more) of our revenue. We grossed $96 million (or more) from them in that year. Where you're going with your extrapolation, I have no idea.

 

[Fred's Myth]

Express gross revenue for FY'18 was $9.6 billion. Amazon represents 1% (or more) of our revenue. We grossed $96 million (or more) from them in that year. Where you're going with your extrapolation, I have no idea.

Let me try.

What percent of our volume was Amazon?
If it was more than 1%, matching the 1% revenue, then FedEx expended more to handle Amazon freight than it got in return. Some other accounts were subsidizing Amazon in our system, thereby lowering net revenues from them.
Net revenue is the goal.

 

[SmithBarney]

Express gross revenue for FY'18 was $9.6 billion. Amazon represents 1% (or more) of our revenue. We grossed $96 million (or more) from them in that year. Where you're going with your extrapolation, I have no idea.

Where I was going is that FedEx Didn't feel the increased volume and strain on the network was worth it just to "have" Amazon.

 

[Myort]

Our station volume went down about 3%.

 

[59 Dano]

Let me try.

What percent of our volume was Amazon?
If it was more than 1%, matching the 1% revenue, then FedEx expended more to handle Amazon freight than it got in return. Some other accounts were subsidizing Amazon in our system, thereby lowering net revenues from them.
Net revenue is the goal.

That doesn't make sense. For one, there are plenty of customers whose piece count percentage exceeds their revenue percentage, and it makes no more sense to ditch them than it does anyone else. Two, what sense does it take to spend money to handle freight simply to turn that freight down because it doesn't hit some ratio that the company doesn't even use?