Is Fed-Up a real possibility?

[quad decade guy]

My hub is next to a 2 runway "cargo" airport. Cargo because there is no regularly scheduled passenger service there. Mostly maintenance for American and cargo for Fed Ex. Apparently we weren't smart enough to utilize it as such. Now, it is by a huge margin been taken over by Amazon. OK. Amazon just built a huge hub, acquired aircraft and got to work....taking our business.

Business articles popup regularly about the pkg shipping "wars". There was one the other day about how Fed-Ex was creating shipping alliances with "all the rest of small retailers"(vs. Amazon). Ups was not mentioned. A lot has been said about there being room for Amazon and "everybody" else.

My first reaction sent me to the Yellow Roadway merger. Many would agree was a desperation move to save both carriers. High debt, high labor cost business models. You know the rest of it.

An unfamiliar observer would look around Fed-Ex and UPS and think wow these places are super busy and what's the worry? Great question. Post covid, will it always be that way? It is now. But I can remember going through ups and downs and going YEARS without gaining seniority slots unless someone retired or died.

Amazon(for now) seems to be about price(whatever that means) and ease of transaction(whatever that means to customers)(as I see it).

So, all of that to say this-Could Fed-Ex and UPS team up(merge) to fight(compete) with Amazon? I think it is well known that losing either(FDX/UPS) would be chaotic for consumers for quite awhile until either(or Amazon) could catch up with capacity. Setting aside the possibility of losing the Postal Service.

Is it possible? I would imagine so. Probable? Eventually? Destined to?

I think it would be fascinating to be a fly on the wall of Corporate. Interesting to say the least.

 

[MyTripisCut]

The way I understand it, Amazon drivers are almost entirely sub contractors. They abandoned third party shipping at the beginning of the pandemic when they got a taste of how bad it can be. I don’t see them as the threat that everyone else does. E commerce has grown steadily except maybe in ‘09-‘10 for 20 twenty years now. And here’s the thing, Amazon sells things, we sell a service, two different companies. Amazon doesn’t have brick and mortar like Walmart or Target, they are unique in the fact that if you buy something from them it HAS to be delivered. So if they deliver half of their product is that any different than half the sales (or more) that Walmart, Target, and any other retailer makes in their brick and mortar store?

 

[Seymour Packages]

I was just having this conversation with my friend who works for Fedex. I think a Fedex/Amazon merger would be more probable. Fedex has the business volume and outside delivery network that Amazon could add it's own volume to and be very competitive with UPS. There would be no union, therefore lower salaries, no pensions to pay out, and a largely fly by night workforce. The combined air network would make their Prime service the standard in the industry, and UPS would HAVE to step up its NDA service at all costs or risk losing business to the new "AmaFed." All speculation, of course. But make no mistake, Bezos will not stop until his company has delivers something to every house, every day.

 

[No1 Special]

At what point does anti-trust kick in?

 

[Box Ox]

At what point does anti-trust kick in?

 

[ManInBrown]

Fat Freddy and Bezos the s kumbag are two peas in a pod. Both love paying slave wages. Perfect marriage. Bezos is a despicable human being. The guy makes billions practically every single day. Does not care one bit about the safety of his employees during Covid. Someone in an Amazon facility in Staten Island raised the red flag about Covid and the lack of precautions being taken. Company went on an all out misinformation blitz about the employee and then fired him. There’s owning a business and being in it to make money. And then there’s Bezos. You have some type of responsibility I would think to make a difference when you’re worth 200 billion. Am I wrong?

 

[trickpony1]

Am I wrong?

You're wrong.
The fired employee will just be replaced by one of many prospects who will think they died and gone to Heaven when hired by Amazon.

 

[DriverNerd]

A possible merger could happen in a distant future, but that would entail that both companies would have been surpassed by other companies in size. Either Amazon, Walmart, etc would have to grow shipping companies that eventually outsize UPS and Fedex, or Amazon would have to get so huge that the only way to compete would be with a merger and sharing costs. Neither case is very likely or anywhere near a possibility in the short term.

 

[rustys954rr]

Why would amazon buy any delivery company? Right off the bat you'd lose most of your business accounts that compete with Amazon. Part of the delivery company valuation is tied in with their ability to do business with those clients. If Amazon chose fedex they would still have to consolidate the ground, air, and freight companies which would mean them selling a lot of redundant assets they just bought. Honestly the cheapest way is the way they are doing it, piggybacking off ups/usps until they can setup their own operations. They create fulfillment centers where they need them, not make them work to fit the FedEx or UPS system.

 

[Staydryitsraining]

I dont think our government with how it feels towards amazon would ever allow them to purchase fed ex.

 

[WeAreAllGoingToMakeIt]

I was just having this conversation with my friend who works for Fedex. I think a Fedex/Amazon merger would be more probable. Fedex has the business volume and outside delivery network that Amazon could add it's own volume to and be very competitive with UPS. There would be no union, therefore lower salaries, no pensions to pay out, and a largely fly by night workforce. The combined air network would make their Prime service the standard in the industry, and UPS would HAVE to step up its NDA service at all costs or risk losing business to the new "AmaFed." All speculation, of course. But make no mistake, Bezos will not stop until his company has delivers something to every house, every day.

> Amazon merges with FedEx

This strategy would be brilliant. I don't know how probable it is, but anything is possible.

 

[Indecisi0n]

Amazon bought our hub and laid off 80% of the employees. Help us !

 

[Yeet]

Amazon bought our hub and laid off 80% of the employees. Help us !

You’ll get nothing and like it!

 

[Indecisi0n]

You’ll get nothing and like it!

We got our benefits pulled , pay cut in half but we do get 30% off prime subscription. It’s not too bad.

 

[Yeet]

We got our benefits pulled , pay cut in half but we do get 30% off prime subscription. It’s not too bad.

Word? They hirin’?

 

[WeAreAllGoingToMakeIt]

Amazon bought our hub and laid off 80% of the employees. Help us !

Well, get ready to punch in and get into your Amazon-patented™ cage, employee number 360543.

 

[Box Ox]

Well, get ready to punch in and get into your Amazon-patented™ cage, employee number 360543.

View attachment 320216

Ooooo, an inside-out claw machine!

 

[DumbTruckDriver]

Amazon bought our hub and laid off 80% of the employees. Help us !

You guys had a PVD promoted to center manager. There’s no help for you.

 

[ouanling]

The way I understand it, Amazon drivers are almost entirely sub contractors. They abandoned third party shipping at the beginning of the pandemic when they got a taste of how bad it can be. I don’t see them as the threat that everyone else does. E commerce has grown steadily except maybe in ‘09-‘10 for 20 twenty years now. And here’s the thing, Amazon sells things, we sell a service, two different companies. Amazon doesn’t have brick and mortar like Walmart or Target, they are unique in the fact that if you buy something from them it HAS to be delivered. So if they deliver half of their product is that any different than half the sales (or more) that Walmart, Target, and any other retailer makes in their brick and mortar store?

Im in Canada where amazon is a little bit less powerful. The guys delivering for them are ALWAYS missdelivering, they leave tons of packages IN the water when it rains (i see dozens on my small area every time) and a lot of them are going to get tickets for broken headlights and other stuff. On their low salary and with the crazy inflation here(a super smelly ty 2 br is now 900$ per month, in a suburb), most of them will eventually give up.

I see a lot less ubers around, all these gig economy jobs are getting abandoned.
2$/package, they can't do much more than 50-80 a day.. take off gas(higher in canada and we have stop lights every 10meters, gets expensive in a minivan from the early 00's), taxes(higher in canada), trip to mechanics, etc.

 

[quad decade guy]

Im in Canada where amazon is a little bit less powerful. The guys delivering for them are ALWAYS missdelivering, they leave tons of packages IN the water when it rains (i see dozens on my small area every time) and a lot of them are going to get tickets for broken headlights and other stuff. On their low salary and with the crazy inflation here(a super smelly *ty 2 br is now 900$ per month, in a suburb), most of them will eventually give up.

I see a lot less ubers around, all these gig economy jobs are getting abandoned.
2$/package, they can't do much more than 50-80 a day.. take off gas(higher in canada and we have stop lights every 10meters, gets expensive in a minivan from the early 00's), taxes(higher in canada), trip to mechanics, etc.

Funny, we have lot's of Democrats here looking to Canada(Venezuela too) as some sage/wise place of wokeness. As you describe it, sounds like California. Why would anyone want that? It's pretty obvious Amazon doesn't have to do ANYTHING about service/safety or anything else. These gig" jobs are here to stay. Just like people who mow lawns, painters etc. Can't "fit in" in normal society and structured jobs. For reasons including drug addiction to psychological reasons. To be clear: not all painters and landscapers fit this narrative...

It seems Canada would be perfect for Amazon. Just order in and skip going out in that frigid night. Delivered right to your door. Seems like.