Last week FedEx released a “Statement Regarding FedEx Corporation’s Relationship with Amazon.com, Inc.” with the express purpose of showing how little of the company’s revenue comes from the retailer.
“Amazon.com, Inc. is not FedEx Corporation’s largest customer,” the statement said. “The percentage of total FedEx revenue attributable to Amazon.com represented less than 1.3 percent of total FedEx revenue for the 12-month period ended December 31, 2018.”
The statement appears to have been made in response to ongoing speculation that Amazon could become a direct competitor of FedEx, and other shipping giants like UPS, as it expands its own delivery and fulfilment offerings. At the very least, it may become less dependent on other courier companies for handling its own business.
Credit: Liam Kevan
A FedEx spokesperson told Business Insider: “While there has been significant media interest in what Amazon is doing to expand their in-source delivery capability, this should not be confused as competition with FedEx.
“The global infrastructure, the technology, the capabilities and the knowledge needed to compete in our business is quite extraordinary, and we have built that up over 40-plus years.”
UPS CEO David Abney has also downplayed the competitive threat of Amazon, describing the company as “a good customer of ours”.
Source: Business Insider