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Amazon Shifting Business Away from Fedex to UPS
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<blockquote data-quote="TUT" data-source="post: 1351107" data-attributes="member: 29298"><p>It may be a ok move for Fedex. The less eggs in the Amazon basket may be the place to be, if they actually can do what they(Amazon) hope. Lessons the blow.</p><p></p><p>Smart Post even though Fedex props it up because it did have high growth (think I shipped 1, now I shipped 2, 100% growth!) it was still a small number to their bottom line.</p><p></p><p>2014 Fiscal:</p><p>Express 27 billion/yr rev</p><p>Ground 10.6 billion/yr rev</p><p>Freight 5.7 billion/yr rev</p><p>Other 1.5 billion/yr rev</p><p>Smart Post 983 million/yr rev (-15% =~150 mil was loss by customer X)</p><p></p><p>Smart Post is 2% of overall revenue. The loss of biz represents .3 % of overall revenue.</p><p></p><p>$730 million profit for a quarter maybe their best quarter ever, if not certainly top 3. I am assuming this is where the buyouts over the past year are starting to pay off for Fedex.</p></blockquote><p></p>
[QUOTE="TUT, post: 1351107, member: 29298"] It may be a ok move for Fedex. The less eggs in the Amazon basket may be the place to be, if they actually can do what they(Amazon) hope. Lessons the blow. Smart Post even though Fedex props it up because it did have high growth (think I shipped 1, now I shipped 2, 100% growth!) it was still a small number to their bottom line. 2014 Fiscal: Express 27 billion/yr rev Ground 10.6 billion/yr rev Freight 5.7 billion/yr rev Other 1.5 billion/yr rev Smart Post 983 million/yr rev (-15% =~150 mil was loss by customer X) Smart Post is 2% of overall revenue. The loss of biz represents .3 % of overall revenue. $730 million profit for a quarter maybe their best quarter ever, if not certainly top 3. I am assuming this is where the buyouts over the past year are starting to pay off for Fedex. [/QUOTE]
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