FEDEX losing Amazon business NOW?

dmac1

Well-Known Member
I buy a lot from Amazon. Lately, everything has been delivered by either UPS or USPS. Nothing delivered by any part of fedex. It used to be split about evenly between the three, plus an occasional local service. I had a LOT of problems with HD especially getting stuff delivered on time, not so much ground. HD has a terminal 80 miles away, ground is about 1 mile.

Wondering if less Amazon is a national issue, or just a random issue.
 

MAKAVELI

Well-Known Member
I buy a lot from Amazon. Lately, everything has been delivered by either UPS or USPS. Nothing delivered by any part of fedex. It used to be split about evenly between the three, plus an occasional local service. I had a LOT of problems with HD especially getting stuff delivered on time, not so much ground. HD has a terminal 80 miles away, ground is about 1 mile.

Wondering if less Amazon is a national issue, or just a random issue.
It's always random until they fly, truck and deliver it all themselves.
 

dezguy

Well-Known Member
They're delivering their own :censored2: where I am, now. Was talking with a Purolator guy the other day and they've laid off two guys with more expected in the near term.

I guess they're doing it like Uber; drive around in your own vehicle, delivering packages for a buck a pop. Sad thing is, these guys think they're making good money but need to do 25-30 stops an hour, minus gas and vehicle wear and tear.
 

OrioN

double tap o da horn dooshbag
Those are flex drivers... no DSPs yet in your area?

I'm still delivering Amazon stuff in my area, mostly big boxes with Prime on the shipping label
 

dezguy

Well-Known Member
Those are flex drivers... no DSPs yet in your area?

I'm still delivering Amazon stuff in my area, mostly big boxes with Prime on the shipping label
No idea. Haven't personally seen an Amazon truck but I have noticed a lack of Amazon on my route the past two or so months.
 

Operational needs

Virescit Vulnere Virtus
They're delivering their own :censored2: where I am, now. Was talking with a Purolator guy the other day and they've laid off two guys with more expected in the near term.

I guess they're doing it like Uber; drive around in your own vehicle, delivering packages for a buck a pop. Sad thing is, these guys think they're making good money but need to do 25-30 stops an hour, minus gas and vehicle wear and tear.
I’ve seen multiple cab drivers delivering Amazon. I heard they’re having a cab shortage in Washington, DC because they’re out delivering Amazon. Lol.
 

dezguy

Well-Known Member
Dano 59 will shortly be telling us that Amazon will soon fail at this and FedEx doesn't need them anyways.
There is still plenty of freight and, from what I understand, Amazon was getting a very good discount from FedEx.

Personally, I don't think FedEx NEEDS Amazon.
 

vantexan

Well-Known Member
There is still plenty of freight and, from what I understand, Amazon was getting a very good discount from FedEx.

Personally, I don't think FedEx NEEDS Amazon.
FedEx needs profits and losing Amazon, if that's the case, just makes it that much harder to clear a profit.
 

vantexan

Well-Known Member
Again, from everything I've heard, FedEx wasn't making much of a profit off Amazon.
It was making money to pay employees. Take away Amazon and it'll come out of the profit to make up the difference. FedEx wasn't delivering at cost or at a loss overall.
 

dezguy

Well-Known Member
It was making money to pay employees. Take away Amazon and it'll come out of the profit to make up the difference. FedEx wasn't delivering at cost or at a loss overall.
FedEx survived without Amazon and unless Amazon is is going to start carrying for other companies and become a direct competitor, it won't make a huge difference. Employees will continue to get paid.

If Amazon does decide to become a direct competitor, they'll learn a hard lesson when they realize they can't prioritize their freight over that of their customers.
 

dezguy

Well-Known Member
In order for these drivers to make the $25-$30/hour, this is the type of stuff drivers have to do to hit those 25-30 SPH.
 

bacha29

Well-Known Member
FedEx survived without Amazon and unless Amazon is is going to start carrying for other companies and become a direct competitor, it won't make a huge difference. Employees will continue to get paid.

If Amazon does decide to become a direct competitor, they'll learn a hard lesson when they realize they can't prioritize their freight over that of their customers.
Agreed. Unless Amazon decides to become a common carrier it's impact will look much bigger than it really is. That doesn't mean that it won't get slow especially for Ground but it has always become slow for it in June until the school stuff starts coming in. A long awaited slow down in the economy? Now that could hurt.
 

vantexan

Well-Known Member
FedEx survived without Amazon and unless Amazon is is going to start carrying for other companies and become a direct competitor, it won't make a huge difference. Employees will continue to get paid.

If Amazon does decide to become a direct competitor, they'll learn a hard lesson when they realize they can't prioritize their freight over that of their customers.
FedEx was a smaller operation overall before Amazon. Doesn't matter if Amazon becomes a competitor or not, without them FedEx will be consolidating routes, curtailing hiring, get leaner and meaner with current employees. Lower profits means smaller dividends, dividends drive stock price. If stock price drops, Fred and the other execs become less rich. Which really upsets them. There's no such thing as ho hum when a customer as big as Amazon is lost.
 

dezguy

Well-Known Member
FedEx was a smaller operation overall before Amazon. Doesn't matter if Amazon becomes a competitor or not, without them FedEx will be consolidating routes, curtailing hiring, get leaner and meaner with current employees. Lower profits means smaller dividends, dividends drive stock price. If stock price drops, Fred and the other execs become less rich. Which really upsets them. There's no such thing as ho hum when a customer as big as Amazon is lost.
FedEx, et al have known Amazon was leaving for a few years now. It's not like this was dropped out of the blue.

Will it affect hiring? Yeah. Will it cause FedEx to take back from employees? Ehhhhh....

They're having a hard enough time keeping the people they have. I'm not sure going after its employees is going to better that situation.
 

dex 84

Well-Known Member
FedEx was a smaller operation overall before Amazon. Doesn't matter if Amazon becomes a competitor or not, without them FedEx will be consolidating routes, curtailing hiring, get leaner and meaner with current employees. Lower profits means smaller dividends, dividends drive stock price. If stock price drops, Fred and the other execs become less rich. Which really upsets them. There's no such thing as ho hum when a customer as big as Amazon is lost.
Not sure but I believe Amazon is only 3% of our business. Losing that wouldn't be that big of a deal considering how busy we've been lately. It would mean slightly less OT, I don't think it would it would mean canceling routes left and right...
 

vantexan

Well-Known Member
FedEx, et al have known Amazon was leaving for a few years now. It's not like this was dropped out of the blue.

Will it affect hiring? Yeah. Will it cause FedEx to take back from employees? Ehhhhh....

They're having a hard enough time keeping the people they have. I'm not sure going after its employees is going to better that situation.
FEdEx has always pushed employees for every penny it pays them. Is turnover as high as before the new pay plan? Doubtful. But to avoid layoffs if things get tight they'll push employees enough that plenty will quit before they ever reach top pay. Wouldn't be the first time, doubtful the last.
 

vantexan

Well-Known Member
Not sure but I believe Amazon is only 3% of our business. Losing that wouldn't be that big of a deal considering how busy we've been lately. It would mean slightly less OT, I don't think it would it would mean canceling routes left and right...
I hope you're right for you're sake.
 
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