Should UPS and FedEx be worried?

Amazon has been studying UPS & FedEx services for years. I remember when a good majority of Amazon freightvwas hauled by these 2 mega courier companies. I figured one day this would be implemented. The bigger business shark usually wins. Look at what Amazon did to a lot of malls and bigger departments stores.

 

Fedex freight, yes, not UPS so much. Saia, Old dominion, Estes, etc as well.

I’m not sure exactly how profitable these companies are, post Yellow, but Yellow didn’t go broke because of high profits.

 

I wonder if the drivers will be all contractors like they go now.

 

Yes they should be worried.

 

No they are not worried nor will be.

 

They have a long ways to go before they are a threat to anyone other than their customers. I am a seller on Amazon and read the Seller forums. There are constant posts re missed pickup - for days or weeks. Delayed and lost pallets seemed be the norm. Not many good experiences.

 

Delayed and lost pallets is because they’re scattered out along the ditch because they pile their trucks up so much.

 

I'm guessing they see that LTL is the only sector of trucking that actually gets decent returns and profit margins.

They have developed the hard part of LTL with a mass of terminals and trailers. The infrastructure is there. Kind of surprised it took them this long to break into LTL. They have the capital to burn by undercutting the LTL companies for a few years. They'll need to figure out how to get their bottom feeder contracted drivers to do P&D routes but I'm sure that won't be that major of a speed bump.

Sounds like one of the few remaining gravy trains in the trucking world is about to slowly go away. Not that P&D is a gravy train. But the linehaul side is.

 

They should merge into one company called 'FED-UP'