Young Research & Publishing Inc.

Investment Research Since 1978

Disclosure

  • About Us
    • Contributors
    • Archives
    • Dick Young’s Safe America
    • The Final Richard C. Young’s Intelligence Report
    • You’ve Read The Last Issue of Intelligence Report, Now What?
    • Dick Young’s Research Key: Anecdotal Evidence Gathering
    • Crisis at Vanguard
  • Investment Analysis
    • Bonds
    • Currencies and Gold
    • Dividend Investing
    • ETFs & Funds
    • Investment Strategy
    • Retirement Investing
    • Stocks
    • The Efficient Frontier
  • Investment Counsel
  • Dynamic Maximizers®
  • Retirement Compounders®
  • Free Email Signup

Amazon Doesn’t Scare FedEx

November 8, 2018 By Jeremy Jones, CFA

By Bennian @ Shutterstock.com

With Amazon creating its own network of delivery services around the country, you may think FedEx CEO Fred Smith would be worried, but according to him, he’s not. Smith thinks that rather than FedEx being hurt, the Postal Service is more likely to take a hit. Bloomberg reports:

FedEx Corp. Chief Executive Officer Fred Smith isn’t sweating Amazon.com Inc.’s move to expand its own delivery network, saying the e-commerce giant is likely to take more business from the post office than the package courier.

“Amazon is a good customer. We think they’ll be a bigger customer in years to come if they continue to grow and they certainly should,” Smith said in an interview Tuesday in Singapore, where he was attending the Bloomberg New Economy Forum. “The biggest single entity that will lose traffic as Amazon puts out its contractor delivery force is U.S. Postal Service.”

To gain more control over deliveries, Amazon this year began forming its own network by supplying vehicles, uniforms, technology and packages to third-party contractors it calls Delivery Service Partners. Most Amazon volume now is handled by the post office, FedEx and United Parcel Service Inc.

The bulk of the new program is for residential customers. Those are less profitable for couriers than businesses, which typically receive multiple packages for each delivery. The growth in online retailing has forced FedEx and UPS to invest more in automation to preserve profit margins. The Postal Service will raise prices for package deliveries between 5 percent and 10 percent starting in January.

Read more here.

Share this:

  • Email
  • Twitter
  • Facebook

You Might Also Like:

  • Amazon to Directly Compete with UPS and FedEx
  • Could Amazon Ever Replace UPS or FedEx?
  • Amazon Outsources Last-Mile Delivery
  • Author
  • Recent Posts
Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #5 in CNBC's 2021 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
Latest posts by Jeremy Jones, CFA (see all)
  • HORDING CASH: Funds Hold the Highest Level of Cash Since 9/11 - May 18, 2022
  • COMMODITY CRUNCH: Will Tesla Buy a Cobalt Mine? - May 17, 2022
  • China’s Economy Taking Hit from Zero-COVID Strategy - May 16, 2022

Search Young Research

Most Popular

  • MARKET CHAOS: This May Take Time, Here’s How to Prepare
  • Don’t Throw Your Bond Portfolio Out the Window
  • PRICES SOAR: Diesel Shortage Could Cripple America's Economy
  • Your Survival Guy: “Sell in May, Buy After Labor Day?”
  • You Can Do Better than Mutual Funds and ETFs with Your Cash
  • All-Powerful Money Managers Voting YOUR Money Targeted by Senate GOP
  • Institutional Investors Fall in Love with Oil, Again
  • Will Market Prices Soon Be Meaningful Again?
  • Vanguard Wellesley (VWINX) vs. Wellington (VWELX): Which Fund is Best?
  • The Power of a Compound Interest Table

Don’t Miss

Default Risk Among the Many Concerns with Annuities

Risk and Reward: An Efficient Frontier

How to be a Billionaire: Proven Strategies from the Titans of Wealth

Could this Be the Vanguard GNMA Winning Edge?

Cryptocosm and Life After Google

Warning: Avoid Mutual Fund Year End Distributions

Is Gold a Good Long-term Investment?

How to Invest in Gold

Vanguard Wellington (VWELX): The Original Balanced Fund

What is the Best Gold ETF for Investing and Trading?

Procter & Gamble (PG) Stock: The Only True Dividend King

The Dividend King of the North

You’ll Love This if You’re Dreaming of an Active Retirement Life

RSS The Latest at Richardcyoung.com

  • Consequences of Biden Killing the Keystone Pipeline
  • Are You Suffering from One of These Nutrient Deficiencies?
  • PRIMARIES: Trump Endorsed Candidates’ HUGE Night
  • “We Cannot Save Ukraine by Dooming the US Economy.”
  • What’s Ahead for America During Biden’s Last Years
  • BE VIGILANT: The Rats Are Scurrying in These Rough Markets
  • COERCION BY APOCALYPSE: The Great Reset Wants to Transform Society with Disaster
  • More Returnees than Refugees at Ukrainian Border
  • DIGITAL DOLLAR DOOMSDAY: The Wall Street Journal Is NOT Going to Tell You This
  • Musk to Break Silicon Valley’s Progressive Conformity?

About Us

  • About Young Research
  • Archives
  • Contributors

Our Partners

  • Richard C. Young & Co.
  • Richardcyoung.com

Copyright © 2022 | Terms & Conditions

 

Loading Comments...
 

    loading Cancel
    Post was not sent - check your email addresses!
    Email check failed, please try again
    Sorry, your blog cannot share posts by email.