FedEx CEO Says Amazon’s Own Delivery System Will Take Business From USPS, Not FedEx

Fred Smith, founder, and CEO of FedEx told Bloomberg this morning that they don’t see any negative impact from Amazon doing more of their deliveries themselves. Smith says that the biggest entity that will lose business as Amazon implements its own delivery force is the US Postal Service:

“I don’t think it (Amazon’s split HQ announcement) has too much to do with FedEx,” said Smith. “You’ve got to remember that Amazon is delivering things from their fulfillment center to customers. We’re picking up, transporting, and delivering things from every person and business in the world to every other business. The biggest single provider of delivery services to the Amazon fulfillment network is not us, it’s the US Postal Service. They’re the ones that Amazon’s proprietary or indigenous delivery system will take the most volume from.”

“Amazon’s a good customer” Smith added. “We think they will be a bigger customer in the years to come if they continue to grow and they certainly should, but they are going to do some of their deliveries themselves for many reasons. The biggest single entity that will lose traffic as Amazon puts out its contractor delivery force is the US Postal Service.”

Source: FedEx CEO Says Amazon’s Own Delivery System Will Take Business From USPS, Not FedEx