Donald Broughton of Broughton Capital a guy who forgot more about trucking and transportation in general ( and he even knows more than Dano lol) was on CNBC the morning it was announced that Bezos was going to haul his own junk and simply said that Bezos was going to take the easy in town stuff and dump the money losing rural areas onto the USPS and that's exactly what he did.Yep, and it sounds like right now FedEx wants to give them the less profitable rural areas.
It would appear that Fat Freddy is going to do the same thing with Express using the "it's right along your way" justification to dump it off onto the rural route Ground contractor. Well, it's NOT right along your way and chances are it won't pay anymore and perhaps like Smart Post another class of boxes that's not "right along your way" or "you're going right past it" it too might even pay less than what standard Ground paid the contractor. Those RD's will just eat you up.
The basic business model and operating plan still remains unchanged after nearly 40 years. The design was meant to augment Roadway LTL by taking off it small B to B shipments or to take stops that a semi could get in and out of. Now here's Fat Freddy trying to find away to serve another type of market in addition to the 4 or 5 that he has already encumbered it with.
The best this OPCO is going to do will be to perform so badly that the transportation market will reject it outright and in mass if it doesn't completely collapse altogether.