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FedEx Discussions
Should It Come As A Surprise?
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<blockquote data-quote="MAKAVELI" data-source="post: 5302004" data-attributes="member: 43825"><p>The worldwide number is there because Express is a worldwide system. Ground may deliver more domestic volume but Express revenue per pkg is more than double that of ground. The point is Ground's profitability and Express's lack of profitability are intertwined with each other. FedEx has essentially gotten too big to keep two separate OPCOs domestically to operate efficiently and profitable. The UPS model is the only way to be solvent for the future. The contractor model just won't survive much longer as a part of FedEx.</p></blockquote><p></p>
[QUOTE="MAKAVELI, post: 5302004, member: 43825"] The worldwide number is there because Express is a worldwide system. Ground may deliver more domestic volume but Express revenue per pkg is more than double that of ground. The point is Ground's profitability and Express's lack of profitability are intertwined with each other. FedEx has essentially gotten too big to keep two separate OPCOs domestically to operate efficiently and profitable. The UPS model is the only way to be solvent for the future. The contractor model just won't survive much longer as a part of FedEx. [/QUOTE]
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