FedEx CEO and founder, Fred Smith, has predicted his company will overtake UPS in scale and revenue over the next couple of years.
Speaking to Bloomberg, he said: “I will say to you unequivocally: In the next two or three years, I’m firmly of the belief we will pass UPS in terms of size and be the largest by-revenue transportation and logistics [company].”
FedEx has faced setbacks in recent years due to the TNT cyberattack, trade war uncertainty, and a dwindling relationship with Amazon, which has steadily morphed into a competitor. While UPS shares rose by 20% in 2019, FedEx’s dropped 6.3%.
However, Smith suggested that the company will get ahead by positioning itself as anti-Amazon, and allying itself with brick-and-mortar retailers.
“We came to this fork in the road that we had to ally with one side of the other,” he told Bloomberg. “[Retailers] want to become more adept in the e-commerce space, and we intend to allow them to do that.”
UPS, meanwhile, is staying close to Amazon “as long as there’s a mutually beneficial relationship”, according to CEO David Abney.