Didn't even have friends after breaking up? FedEx sees Amazon as "eyes"
- Author:Josie
- Source:Seabay
- Release Date:2019-09-21
Didn't even have friends after breaking up? FedEx sees Amazon as "eyes"
How FedEx CEOs compete with Amazon every day
FedEx CEO Fred Smith often said in public that Amazon is not a competitive threat. But he said on Tuesday's earnings conference call that Amazon is one of the top five in the logistics arena and the company he thinks every day.
He said this:
“The last thing I want to say is that we basically compete in an ecosystem with five entities. With UPS, DHL and USPS, Amazon’s presence is getting stronger and stronger. We wake up every day thinking about how to The competition, how to provide the best for our sales team.
Smith's remarks represent a major shift in FedEx's position, and FedEx has long undervalued Amazon's growing influence in the logistics arena.
For example, in March of this year, FedEx president Rajesh Subramaniam said in his earnings report that although all media are concerned about Amazon's potential subversive capabilities in the logistics industry, Amazon has no threat to "our business or future development."
According to the solution, in September last year, Subramaniam said that Amazon's entry into the logistics field "should not be confused as starting to compete with FedEx." He also said that Amazon is a "long-term customer" of FedEx, and no one customer can account for more than 3% of their company's revenue.
Once a partner's current competitor
Earlier this year, FedEx decided to terminate its land and air contract with Amazon. FedEx’s recent earnings report showed that the company’s first-quarter earnings failed to meet Wall Street analysts’ expectations and lowered its forecast for the entire 2020 fiscal year, in part because of the loss of “a big customer”. May be referring to Amazon.
At the same time, Amazon's commercial landscape has expanded in recent years, significantly expanding its distribution network. In May of this year, it launched a new courier service partner program (encouraging employees to leave the company to start a courier company) and expanded its air cargo aircraft to 50 so that it does not have to rely on FedEx and UPS. In the annual report for February this year, the company also added “transport and logistics services” to its competitors list for the first time.
On FedEx’s conference call on Tuesday, its CEO hinted that competition would only intensify and underscore the superior operational capabilities of those competitors.
He said: "We can't let competitors disappear, I hope they, you know, quit the game. They are good operators."
In fact, the change in the relationship between FedEx and Amazon is exactly what it says: there are no friends and enemies forever in the mall, only forever. The termination of the cooperation between the two has caused FedEx to lose a large customer, and with the increasing capacity of Amazon's logistics services, FedEx has to face a more intense competitive environment. Partners become opponents, but it is a blink of an eye.
FedEx CEO Fred Smith often said in public that Amazon is not a competitive threat. But he said on Tuesday's earnings conference call that Amazon is one of the top five in the logistics arena and the company he thinks every day.
He said this:
“The last thing I want to say is that we basically compete in an ecosystem with five entities. With UPS, DHL and USPS, Amazon’s presence is getting stronger and stronger. We wake up every day thinking about how to The competition, how to provide the best for our sales team.
Smith's remarks represent a major shift in FedEx's position, and FedEx has long undervalued Amazon's growing influence in the logistics arena.
For example, in March of this year, FedEx president Rajesh Subramaniam said in his earnings report that although all media are concerned about Amazon's potential subversive capabilities in the logistics industry, Amazon has no threat to "our business or future development."
According to the solution, in September last year, Subramaniam said that Amazon's entry into the logistics field "should not be confused as starting to compete with FedEx." He also said that Amazon is a "long-term customer" of FedEx, and no one customer can account for more than 3% of their company's revenue.
Once a partner's current competitor
Earlier this year, FedEx decided to terminate its land and air contract with Amazon. FedEx’s recent earnings report showed that the company’s first-quarter earnings failed to meet Wall Street analysts’ expectations and lowered its forecast for the entire 2020 fiscal year, in part because of the loss of “a big customer”. May be referring to Amazon.
At the same time, Amazon's commercial landscape has expanded in recent years, significantly expanding its distribution network. In May of this year, it launched a new courier service partner program (encouraging employees to leave the company to start a courier company) and expanded its air cargo aircraft to 50 so that it does not have to rely on FedEx and UPS. In the annual report for February this year, the company also added “transport and logistics services” to its competitors list for the first time.
On FedEx’s conference call on Tuesday, its CEO hinted that competition would only intensify and underscore the superior operational capabilities of those competitors.
He said: "We can't let competitors disappear, I hope they, you know, quit the game. They are good operators."
In fact, the change in the relationship between FedEx and Amazon is exactly what it says: there are no friends and enemies forever in the mall, only forever. The termination of the cooperation between the two has caused FedEx to lose a large customer, and with the increasing capacity of Amazon's logistics services, FedEx has to face a more intense competitive environment. Partners become opponents, but it is a blink of an eye.
International expressand alsoAmazon to the doorService to understand
Click on the link to find out more.
Click on the link to find out more.