Amazon, a new challenge for FedEx and UPS

Subscription Required

By Vincent Valery

Introduction 

Oct. 7, 2019, © Leeham News: Amazon’s moves into ACMI air service, a dramatic construction of an air freight operation and entering ground delivery services threatens FedEx and UPS.

Although UPS last week beat Amazon to the punch with approval from the Federal Aviation Administration for drone-based package deliveries, Amazon was first to advance the idea.

FedEx canceled its contracts with Amazon as the latter moved into ground delivery. FedEx revenues have fallen sharply in recent months.

Summary
  • Growing Amazon footprint in delivery business;
  • Leads to direct competition with FedEx and UPS;
  • Drone delivery development;
  • A threat to traditional delivery service business model;
  • Trade slump exposes FedEx more.

To read the rest of the article Login or Subscribe today.