Amazon lifts Ground Ban
#11
Amazon has the same model for their final mile deliveries...and they pay worse than FedEx does from what I’ve gathered. Ground has definitely been causing corporate headaches, but IMO, their delivery performance couldn’t have been so terrible that it required them to be banned from being utilized as an option. This was definitely an FU move by Bezos
#12
Nothing new with these 2 jokers, they’ve been at for years. Fred gives no deal to Jeff on shipping price. Jeff makes deal with USPS thereby swinging behind the FedEx front. Fred has the USPS contract; therefore, no choice but to ship Amazon product at lower cost. Claims are that less than 3% of Amazon goods carried by FedEx, kinda true on paper, but highly probable that it’s not. Carriers are contracted to carry for FedEx and UPS outright each year during peak. If they could handle it they would, or would they - probably better/cheaper to swell for a few months with hired help than have parked aircraft/walking crews for most of the year (lower utilization rates). Gray vans becoming more and more numerous. Last July or thereabouts FedEx no longer supports overnight delivery for Jeff’s products/items. As mentioned, Jeff pushed back this December. Retaliation perhaps, doesn’t matter - it will go on indefinitely.
Horizontal Shipping companies are starting to feel the pressure of Vertical companies getting in their game. Once a vertical company bleeds into the horizontal arena the dilution begins. If you cater to something like e-commerce and produce/provide product, your next step is distributors and then distribution itself. Perhaps being horizontal only will lead to losses bit by bit, maybe we’re seeing it now. If Walmart, Target, etc would tie into/encapsulate a FedEx/UPS type group then it gets viable and interesting. One World, Star Alliance, Sky Team - heck Nike does it, why not! Just a thought.
Horizontal Shipping companies are starting to feel the pressure of Vertical companies getting in their game. Once a vertical company bleeds into the horizontal arena the dilution begins. If you cater to something like e-commerce and produce/provide product, your next step is distributors and then distribution itself. Perhaps being horizontal only will lead to losses bit by bit, maybe we’re seeing it now. If Walmart, Target, etc would tie into/encapsulate a FedEx/UPS type group then it gets viable and interesting. One World, Star Alliance, Sky Team - heck Nike does it, why not! Just a thought.
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