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DRA will be the death of express
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<blockquote data-quote="MrFedEx" data-source="post: 1186867" data-attributes="member: 12508"><p>I'm not ignoring it. Overall, DRA has been an enormous failure...so far. Maybe they'll figure it out, but they've had quite awhile in the markets where it has been introduced...and it isn't working. I'm also fully aware that the plan is to plug basically anyone into a truck and set them loose with DRA. That really doesn't seem to be happening for them.</p><p></p><p>As I said, Express is a "dead man walking" IMO. It will slowly decline until it becomes unprofitable, at which time Ground profits will sustain it. For the time being, FedEx has to offer an overnight product to be competitive with the UPS suite of services, so Express has a reason to exist, just like Kinkos, because it fills a niche in the product line.</p><p></p><p> The Express opco is imploding, and it remains to be seen how upper management will respond to this fact. Given past history, I would expect it to hit rock bottom before anything changes.</p></blockquote><p></p>
[QUOTE="MrFedEx, post: 1186867, member: 12508"] I'm not ignoring it. Overall, DRA has been an enormous failure...so far. Maybe they'll figure it out, but they've had quite awhile in the markets where it has been introduced...and it isn't working. I'm also fully aware that the plan is to plug basically anyone into a truck and set them loose with DRA. That really doesn't seem to be happening for them. As I said, Express is a "dead man walking" IMO. It will slowly decline until it becomes unprofitable, at which time Ground profits will sustain it. For the time being, FedEx has to offer an overnight product to be competitive with the UPS suite of services, so Express has a reason to exist, just like Kinkos, because it fills a niche in the product line. The Express opco is imploding, and it remains to be seen how upper management will respond to this fact. Given past history, I would expect it to hit rock bottom before anything changes. [/QUOTE]
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