USPS Task Force Recommendations

Discussion in 'FedEx Discussions' started by bacha29, Dec 5, 2018.

  1. bacha29

    bacha29 Well-Known Member

    Yesterday, The Task Force On the United States Postal System released it's recommendations on how to make the system profitable . Here's one of it's most interesting:...."Developing a new pricing that removes price caps and charges market based prices for both mail and package items that are not deemed essential postal services".

    Don't think for a minute that Bezos didn't see this and it might accelerate the development of his own transportation network.

    No doubt that Fat Freddy saw it too.
     
  2. 59 Dano

    59 Dano Some of my best friends are black.

    OK, Smith and Bezos saw it.
     
  3. bacha29

    bacha29 Well-Known Member

    OK, since you're the resident expert on the industry we are all waiting with baited breath for your assessment on how this matter could impact the industry.
     
  4. Oldfart

    Oldfart Well-Known Member

    Why dont you enlighten us with some of your financial gibberish you are so good at.
     
  5. Fred's Myth

    Fred's Myth Disaffected Philistine

    Bated. Baited breath would stink.
     
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  6. 59 Dano

    59 Dano Some of my best friends are black.

    Never claimed to be an expert on the industry, just smarter about it than you. This proposal is no different than the rest: generate more revenue. It would potentially raise prices on mail. YAWN.
     
  7. bacha29

    bacha29 Well-Known Member

    The task force was created in April . Just a few months later AMZN rolls out it's own copy of the FXG contractor model. A couple more months go by and the report is released calling for for the lifting of rate caps on both mail and packages affording the USPS the opportunity to charge what it thinks it's services are worth.
    Perhaps Bezos suspecting that his days of cheap USPS rates might coming to an end decided that when it comes to getting his junk where it's supposed to go he decided to go big or go home and begins doing it himself.
     
  8. 59 Dano

    59 Dano Some of my best friends are black.

    Amazon's plans have been years in the making.
     
  9. bacha29

    bacha29 Well-Known Member

    But has the timeline been spend up? I think so. According to Bezos his largest cost increase over the past couple of years has been shipping costs. No question doing it himself has been on his mind but when combined with the XG out of court settlement and the task force recommendations I think Exec 32 belief that the ADP program may expand to other parts of the country and into other markets faster than expected, he could be on to something. It's simply wait and see.
     
  10. SmithBarney

    SmithBarney Well-Known Member

    Of course it has, primary reason is online sales continue to dominate and climb, and the big three UPS/FDX/USPS are indeed struggling to maintain service levels. secondary reason financials, of course it would save AMZ money.

    Unfortunately with the continued growth of AMZ online sales, I don't think you'll see a huge dent in our package count on a daily level, AMAZON AIR will grow, but possibly not fast enough to keep pace with it's sales.. I still wouldn't put it past Bezo to put in a bid for Express.
     
  11. dmac1

    dmac1 Active Member

    Makes me wonder. With Amazon's ADP similarities to ground, might it not make sense for Bezos to think about purchase of fedex ground more than Express? You would need to know where the most dollars are spent, and the most can be saved- on the cross-country travel by air for 2-day guarantees, or by ensuring the final delivery miles are accomplished on schedule. Fedex seems to handle the overnight stuff better than they do the ground stuff. Plus it would be cheaper to set up ground operations if contractors are absorbing the upfront costs. I can't imagine contractors with cargo planes waiting to sign up with Amazon, meaning a huge upfront investment in air cargo facilities and sorting equipment.

    I still see ADPs doing pickups from smaller local manufacturers/suppliers on their way back from doing purely/mostly residential deliveries from Amazon's local distribution centers. I don't think Bezos is even close to being ready to compete for [email protected] deliveries/pickups.

    If fedex had stuck with HD being totally residential and in their own faciliities, Amazon buying HD would have been a natural for delivery of Amazon goods.

    And being an Amazon ADP would be better than being a Ground ISP simply because of simply doing deliveries to residential is easier than business deliveries with bulk, weight, and wait.
     
  12. 59 Dano

    59 Dano Some of my best friends are black.

    Some people see a football, others see something that could possibly lead to a hobby, then a dream, then the fulfillment of that dream in a Super Bowl victory.

    But 99.999999999% of the time, it's just a football.
     
  13. 59 Dano

    59 Dano Some of my best friends are black.

    "I have a great idea, Fred. LET'S SELL THE OPCO WITH THE HIGHEST OPERATING MARGIN!!!"
     
  14. Oldfart

    Oldfart Well-Known Member

    Why don't you and bacha get on the phone with Bezos and share your wonderful ideas. I am sure he would welcome your input. I guess he became the richest man in the world by accident.
     
  15. vantexan

    vantexan Well-Known Member

    In order for Bezos to buy Ground FedEx would have to peel it off as a separate company with it's own stock. Otherwise he'd have to buy the whole company which would require a heck of a lot of money to buy enough stock to have a controlling interest. The FedEx board of directors has a fiduciary responsibility to it's stock holders to get the best price possible for their stock, assuming they are even contemplating such a sale. The day may come that the board may see that FedEx is no longer a viable operation due to competitors and their innovations(think Sears), but that's a long ways away. And as was pointed out, if FedEx was to ever break up the company into separate entities, Ground being the most profitable wouldn't be the one they'd want to get rid of.
     
  16. Exec32

    Exec32 Active Member

    Wow, you are so enlightening.
     
  17. Exec32

    Exec32 Active Member

    AMAZON potentially not growing fast enough to keep up with its sales is why they will need carriers like X to continue to exists, for now. Matter of fact that's not a bad problem to have. Amazon will grow marginally as it meets it's own demand, then expand to take the market share away from other carriers in a methodical manner. After destroying much equity in other competitors, then an option to acquire will present itself. This will take another 5 years.
     
  18. Exec32

    Exec32 Active Member

    Clueless
     
  19. Exec32

    Exec32 Active Member

    Irony is fedex doesn't even own the most essential part of their so called delivery chain. Its primarily contracted.
     
  20. Exec32

    Exec32 Active Member

    I believe there is at least one thing we can all agree on, this doesn't look good for X on the horizon. Amazon is not adjusting their strategic plan, timing will be everything. In the mean time X will deny any of this.