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Guess who came crawling back?
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<blockquote data-quote="59 Dano" data-source="post: 4462219" data-attributes="member: 23516"><p>That was a component of the reasoning for not renewing the contract with them. The obvious reason was that they wanted deep discounts for unprofitable work. The secondary reason was that it would make it harder for UPS and Amazon to provide on-time service. It put FedEx in a better position down the road if (when) Amazon ran into problems. For all of the "OMG FRED IS SO DUMB WHO TURNS DOWN AMAZON" hysteria, it was the right move. The growth of e-commerce was likely to outpace the ability of Amazon to meet its service commitments without having FedEx as a carrier.</p><p></p><p>I doubt Amazon pays full retail but whatever they are paying will be much more favorable to FedEx than whatever deal would have been negotiated last summer. </p><p></p><p></p><p></p><p>Exactly. This is the time to rake it in.</p></blockquote><p></p>
[QUOTE="59 Dano, post: 4462219, member: 23516"] That was a component of the reasoning for not renewing the contract with them. The obvious reason was that they wanted deep discounts for unprofitable work. The secondary reason was that it would make it harder for UPS and Amazon to provide on-time service. It put FedEx in a better position down the road if (when) Amazon ran into problems. For all of the "OMG FRED IS SO DUMB WHO TURNS DOWN AMAZON" hysteria, it was the right move. The growth of e-commerce was likely to outpace the ability of Amazon to meet its service commitments without having FedEx as a carrier. I doubt Amazon pays full retail but whatever they are paying will be much more favorable to FedEx than whatever deal would have been negotiated last summer. Exactly. This is the time to rake it in. [/QUOTE]
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