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.”
SEATTLE–(BUSINESS WIRE)–Nov. 5, 2018– (NASDAQ: AMZN) – This holiday season Amazon is giving customers even more convenient and faster delivery options.
Starting today, November 5, and for a limited time, all Amazon customers can enjoy free shipping with no minimum purchase amount on orders that will arrive in time for the Christmas holiday. This offer applies to hundreds of millions of items – the largest free shipping selection in the country. Continue reading →
No surprise here- our so-called “president”, who is so unhinged about Amazon’s Jeff Bezos, has apparently handed a major tax advantage to Amazon delivery people, while denying it to the letter carriers he claims to be defending! Continue reading →
But a massive shopping event like Prime Day is only in possible in part because of Amazon’s Flex program, which recruits everyday people to deliver Amazon packages for a modest wage. Continue reading →
Washington, D.C. (June 13, 2018)—Today, Reps. Elijah E. Cummings, the Ranking Member of the House Committee on Oversight and Government Reform, and Gerald E. Connolly, Ranking Member of the Subcommittee on Government Operations, sent a letter to Donald Trump in response to troubling reports that he is using his authority as president to launch political attacks against Amazon and its founder, Jeff Bezos, and to pressure the Postal Service to raise its rates for Amazon. Continue reading →
Yesterday Donald Trump continued his error filled tirades against Amazon and the US Postal Service, this time citing a report he claimed (falsely) had “just come out” and supported his charge that the USPS is subsidizing Amazon. Other analysts have pointed to serious flaws in the report, but now even the report’s author says it doesn’t prove what Trump claims it does:
From Business Insider:
He seems to be referring to a 2017 Citi Research report that has frequently been cited by people criticizing Amazon’s use of the USPS.
However, according to the author of the report, Trump has the wrong interpretation. “We never said Amazon is getting a $1.50 subsidy,” Citi analyst Christian Wetherbee told Business Insider on Monday in a discussion of misinterpretations of the report, which actually says the loss per package is roughly $1.46 for the USPS.
Wetherbee continued: “If you read what that number is, it’s the total package business is priced below cost. It has nothing to do with Amazon specifically.”
Axios reports that Donald Trump has become “obsessed” with Amazon and the damage he thinks it’s doing to businesses owned by his billionaire buddies- and he thinks the USPS is part of the problem:
Behind the president’s thinking: Trump’s wealthy friends tell him Amazon is destroying their businesses. His real estate buddies tell him — and he agrees — that Amazon is killing shopping malls and brick-and-mortar retailers.
Trump tells people Amazon has gotten a free ride from taxpayers and cushy treatment from the U.S. Postal Service.
“The whole post office thing, that’s very much a perception he has,” another source said. “It’s been explained to him in multiple meetings that his perception is inaccurate and that the post office actually makes a ton of money from Amazon.”
Axios’ Ina Fried notes: The Postal Service actually added delivery on Sunday in some cities because Amazon made it worthwhile.