FedEx vs UPS Profit margins

[bbsam]

Ground is the future, if you go into the sort facilities all the investment is ground X owns the buildings and they are automated. Express is in leased buildings with old technology

Ground does not own their buildings.

 

[59 Dano]

Ground is the future, if you go into the sort facilities all the investment is ground X owns the buildings and they are automated. Express is in leased buildings with old technology

It's irrelevant who owns the buildings. Why would Express stick with old technology when it's more expensive and less efficient than newer technology? You're not making any sense.

 

[zeev]

Spend money on technology where your future is investment effects the immediate bottom line but builds for the future. Much easier to move from a rented building than one you own.

 

[Oldfart]

Ground is the future, if you go into the sort facilities all the investment is ground X owns the buildings and they are automated. Express is in leased buildings with old technology

Old technology?

What company do you work for? They have upgraded nearly every part of our facility. New fleet with improved fuel mileage, the introduction of LEO. Newer and faster WIFI. They even got us a couple of new pinball machines for the breakroom. I liked the older Dolly Parton machine we had. It will take me a while to beat the AC/DC machine. The music is awesome.

 

[59 Dano]

Spend money on technology where your future is investment effects the immediate bottom line but builds for the future. Much easier to move from a rented building than one you own.

You don't make any sense. You want to make the technology argument? Fine. Let's start with the technology investment of an airplane as compared to that of a truck.

 

[Star B]

Let's go real life here.

Ground, new terminal in the past 10 years. Plenty of space.

Express, we're out of space. Constantly loading full routes outside of the building all year round. We *just* added another 9 routes (not peak routes either). SM signed another multi-year lease this past summer because "the bean counters said we wouldn't outgrow it".

wanna know the only upgrade we're getting? New cameras *everywhere*. Why? I don't know. I think someone's butthurt because of her SFA scores.

 

[zeev]

Ground is the future new terminals new hubs that’s where the profits are. Express small package will not be growing says the bean counters they know.

 

[Oldfart]

Ground is the future new terminals new hubs that’s where the profits are. Express small package will not be growing says the bean counters they know.

So the BILLION $ investment in the Mem Hub is fiction?

 

[dezguy]

Ground is the future new terminals new hubs that’s where the profits are. Express small package will not be growing says the bean counters they know.

The station I work at has added over 10 new routes in the past year. If that's us not growing, I'd hate to see what growing is!

 

[SmithBarney]

Ground is the future, if you go into the sort facilities all the investment is ground X owns the buildings and they are automated. Express is in leased buildings with old technology

Apparently you haven't seen the automated sort facilities that Express designed first and now uses with Ground. We have a local sort nearby that sorts automatically to the rear of delivery vans/trucks to be loaded in stop order.

 

[59 Dano]

Let's go real life here.

Ground, new terminal in the past 10 years. Plenty of space.

Express, we're out of space. Constantly loading full routes outside of the building all year round. We *just* added another 9 routes (not peak routes either). SM signed another multi-year lease this past summer because "the bean counters said we wouldn't outgrow it".

At some point, if the growth is sustained, you'll get a larger facility. Ground got a new building in this area within the last decade; it has nearly 10X the square footage of their old building that was built in 1988 during the RPS days. Express? It got a new building 3 years before Ground did. It moved from its location of more than 20 years to a building with 2X the square footage.

 

[Exec32]

Productivity and retention.
UPS return on investment for having experienced couriers, safe and reliable. There are not many X ground contractor drivers that can match UPS production. They do pay for it, but contractors can not duplicate it. It will continue to get worse because X does not have many owner operators anymore, just unreliable reckless drivers that are lazy. For the most part.

 

[cosis]

Ground does not own their buildings.

We don't own our building at Express. It's falling apart.

 

[59 Dano]

Productivity and retention.
UPS return on investment for having experienced couriers, safe and reliable. There are not many X ground contractor drivers that can match UPS production.

They don't have to when they're playing a flat rate.

 

[MassWineGuy]

During the joke that was my courier training, the I instructor told us that FedEx makes a 700 percent profit on internationals. Seemed hard to believe, but he should know.

 

[Cactus]

During the joke that was my courier training, the I instructor told us that FedEx makes a 700 percent profit on internationals. Seemed hard to believe, but he should know.

‘Tis true.

 

[zeev]

90 % of that is express heavyweight

 

[Oldfart]

During the joke that was my courier training, the I instructor told us that FedEx makes a 700 percent profit on internationals. Seemed hard to believe, but he should know.

Some of that has to do with exchange rates.

 

[Exec32]

During the joke that was my courier training, the I instructor told us that FedEx makes a 700 percent profit on internationals. Seemed hard to believe, but he should know.

Now that is a very important part of training,,,
Did they serve kool-aid.?