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FedEx suggests that Amazon fears are overblown
FedEx apparently do not feel threatened by Amazon’s ventures into air and ocean freight.
For the past several months, Amazon has been showing signs that it might become a competitor in the delivery space. Most recently, the company has made moves to purchase French shipping company Colis Privé and has leased planes in the U.S.
But Mike Glenn, CEO of FedEx Services, has pointed out that replicating the scale and density of networks like FedEx’s would require billions of dollars in capital and years to build. Amazon, he said, also appear to be focusing on local deliveries, not global.
Glenn also addressed concerns that FedEx might lose Amazon as a major customer if the company was building its own delivery network, but the CEO stressed that no client, not even Amazon, represented more than 3% of FedEx’s revenue.
This follows a robust third-quarter earnings call for FedEx, with earnings of $2.51 per share on revenue of $12.7 billion, beating estimates. Shares of FedEx rose to 7.32% in the wake of the news.
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