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FDX - FedEx


rockket

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Someone just chatted me below (I dont have the note myself though and have not verified the source):

 

J.P. Morgan analyst Brian Ossenbeck, in a note to clients, argued the move will provide a bigger bump to FedEx than UPS given it had been a direct competitor of Amazon Shipping since it severed ties last year.

 

The analyst sees a smaller bump for UPS, which has continued to deliver packages for Amazon and will now likely be called upon to pick up some of the slack.

 

However, while Amazon clearly is scrambling to fill its own orders, the decision to suspend Amazon Shipping also highlights some of the challenges the online retail giant faced in its push into the delivery sector, the J.P. Morgan analyst noted.

 

Even though it offered lower rates, Amazon Shipping, since it was launched two years ago, struggled to gain customers beyond its own delivery needs, Ossenbeck wrote.

 

"Building a full-fledged competitor to FedEx appears to look 'fantastical' after all," the J.P. Morgan analyst noted.

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Man I think amazon is so much better at shipping than when they use the third parties.  They might have to spin it off or something (I thought they would have to do that with AWS, but nope) but it damn sure seems like a better mousetrap (very much like early days of taking an uber) to me.

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Just an anecdote, I ordered about $20 of stuff from Amazon yesterday and received it today. And not high volume items either (a dust collection bag and silicon wood glue applicator). I was expecting weeks, maybe a month delay but nope, one day turnaround - even faster than the normal 2-3 day delivery time. I was totally shocked.

 

Same. 

 

Except for days now I've been trying to get an Amazon Fresh delivery time -- they're never available.  I check several times per day.  They need to fix their tech -- this is stupid to ask the customer to come back and check for times later.  Instead, they should put me in line and alert me by text message when it's my turn to schedule delivery.

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I think you're being generous.

 

What exactly is the value added here? Predicting the weather so the freight tanker with your shipment can sprout wings and fly around the storm? Is MSFT going to monitor police radio frequencies in real time to divert Fedex trucks away from roving stagecoach bandits? Will delays at the super-hub in Memphis cause Fedex re-route your package from LA to NY through Bangalore?

 

I am being a bit facetious, but I agree it reads like normal corporate-synergy snake oil nonsense.

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https://www.wsj.com/articles/coronavirus-shifts-pricing-power-to-ups-and-fedexand-they-are-using-it-11596026588?mod=itp_wsj&ru=yahoo

 

"The pandemic has created a moment of reckoning for e-commerce, as carriers like FedEx and UPS UPS +11.28% grapple with a surge in online shopping that has pushed their networks to capacity. Increased demand has also given the delivery firms a window to charge higher rates as retailers need their services more than ever.

 

They are starting to exercise that pricing power, with UPS hitting some large shippers with price increases in the double-digit percent range in recent weeks and FedEx following suit, according to logistics executives including shippers, consultants and carriers. Some of the increases have come mid-contract, these people said, while other increases have been made during renewals."

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