FedEx Reduces Amazon Ties as Retailer Flexes Delivery Muscles (bloomberg.com) 35
FedEx said it wouldn't renew its U.S. air-delivery contract with Amazon.com, paring a key customer relationship as the largest online retailer deepens its foray into freight transportation. From a report: The delivery giant will instead focus on "serving the broader e-commerce market" with U.S. package volume from online shopping expected to double by 2026, according to a FedEx statement Friday. The Amazon contract expires at the end of this month, and doesn't cover international services or domestic operations at other units such as FedEx's ground deliveries. FedEx's surprise move signals that the No. 2 U.S. courier will bank on smaller e-commerce customers that lack Amazon's bargaining power for big volume discounts. Amazon's emergence as a logistics giant is piling pressure on FedEx and United Parcel Service for cheaper and speedier deliveries, as the e-commerce powerhouse builds its own aircraft fleet and delivery capabilities. FedEx said Amazon represented 1.3% of sales last year.
Re:Amazon delivery drivers suck (Score:5, Interesting)
"Amazon delivery drivers suck and can't drive. They get stuck and can't stay on the driveway. Not trained using..."
None of that really matters for Amazon....the questions that matter are, "Are they cheaper and do they deliver the package correctly a high enough percentage of the time?" If the answer to those questions is yes, then none of the rest matters.
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They sucked so much where I am I cancelled prime.
Now that I don't have prime I purchase less than half of what I used to, and no longer use my Amazon credit card.
Sure, I'm just one person, but I doubt I'm the only one.
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I got a prime package next day (Parts for a garage door opener that nobody stocked within a day's drive) delivered by some guy in a Prius with a smartphone at my grandpa's house. Handed me the package (I was outside painting the fence), exchanged a smile and a greeting, and that was it.
He could have been an uber driver, or a doordash driver too - And he probably is! Just some guy doing any other delivery job powered by the brilliant innovation that is literally just some giant logistics system coupled with
Re:Amazon delivery drivers suck (Score:5, Interesting)
Oh yes, the gig economy. Because who needs a middle class with stable, liveable wages right?
In olden times we had UPS drivers who were unionized, made decent money, had insurance/retirement etc.
Now we'll have an army Bezozian slaves who get charged for the bottle they're forced to piss in because a bathroom break is a fire-able offense.
Progress! Ruthless race to the bottom! Efficiency whatever the cost!
Would be more credible if it wasn't backwards (Score:3)
> Oh yes, the gig economy. Because who needs a middle class with stable, liveable wages right?
Yes, is probably a good idea to develop SOME skill that not EVERYBODY has. Most adults have a driver's license, so "I can drive" isn't an awesome thing to have on a resume - better to pick up some skill. Twenty bucks an hour delivering as a side gig to supplement your income, or while in school, isn't bad though.
> In olden times we had UPS drivers
> Now we'll have an army Bezozian slaves who get charged fo
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FedEx is NOT ending their relationship with Amazon. This is only for express services. Their ground delivery relationship will continue.
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What "broader e-commerce market?"
Amazon has about half of online retail sales [bizjournals.com], and about 5% of all retail sales in America.
I'm not sure this will work out for Fedex over the long haul...
They were squeezing FedEx hard for bigger discounts, and at some point FedEx just decided it wasn't worth it.
Disclaimer: Most of my Amazon purchases are delivered by USPS to my mailbox.
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Fed Ex just making it official (Score:1)
The key portion of the article is how much Amazon used Fed Ex last year. The bottom line is that Amazon was only using FedEx to fill in some gaps, probably in less profitable service areas anyway. So it makes sense that Fed Ex would dump the contract. Fed Ex's primary customers have and always have been priority business to business shipping anyway.
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Amazon will have to pay more (Score:2)
FedEx, UPS, and USPS have been offering Amazon steep discounts to get access to the huge volume of Amazon deliveries. But if they couldn't make money doing it, Amazon won't be able to either. And if Amazon has to resort to buying its own trucks and paying its own drivers, they may find out that it costs more than paying FedEx a higher rate for their services. After all, this is FedEx's core business, it's just an expense at Amazon.