FEDEX losing Amazon business NOW?

Discussion in 'FedEx Discussions' started by dmac1, Mar 12, 2019.

  1. dmac1

    dmac1 Active 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.
     
  2. MAKAVELI

    MAKAVELI Well-Known Member

    It's always random until they fly, truck and deliver it all themselves.
     
  3. dezguy

    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.
     
  4. OrioN

    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
     
  5. dezguy

    dezguy Well-Known Member

    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.
     
  6. Operational needs

    Operational needs Virescit Vulnere Virtus

    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.
     
  7. vantexan

    vantexan Well-Known Member

    Dano 59 will shortly be telling us that Amazon will soon fail at this and FedEx doesn't need them anyways.
     
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  8. dezguy

    dezguy 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.
     
  9. vantexan

    vantexan Well-Known Member

    FedEx needs profits and losing Amazon, if that's the case, just makes it that much harder to clear a profit.
     
  10. dezguy

    dezguy Well-Known Member

    Again, from everything I've heard, FedEx wasn't making much of a profit off Amazon.
     
  11. vantexan

    vantexan 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.
     
  12. dezguy

    dezguy 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.
     
  13. OrioN

    OrioN double tap o da horn dooshbag

     
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  14. dezguy

    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.
     
  15. bacha29

    bacha29 Well-Known Member

    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.
     
  16. vantexan

    vantexan 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.
     
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  17. dezguy

    dezguy 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.
     
  18. dex 84

    dex 84 Active 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...
     
  19. vantexan

    vantexan Well-Known Member

    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.
     
  20. vantexan

    vantexan Well-Known Member

    I hope you're right for you're sake.