What if, could Amazon buy Fedex and would it make sense?

Discussion in 'Fedex Freight' started by Dracula, Nov 7, 2017.

  1. Dracula

    Dracula Well-Known Member

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    There are articles that suggest Amazon is getting ready to start their own delivery service. But, if Amazon bought FedEx, it would leapfrog a lot of startup bruises and think of the business that could be run thru a Amazon/ Fedex delivery service. Why give business to UPS when you can send that business to one of its own.
     
  2. CenturyClass

    CenturyClass Lead-side Recruit

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    They've already started. They've leased aircraft and I recently had a Prime package delivered by an Amazon delivery guy in a white unmarked Sprinter fan. I mean, they do have the money for a pet project, but I can't see buying FedEx.
    Amazon already has their own warehouses so getting a company with so many terminals would be a waste. It would take alot of cost to sell all those terminals.
    I know they have alot if inbound freight to the DC, but mostly smaller packages go outbound, and an LTL carrier is not necessarily set up for that.
    They would acquire a huge legacy workforce of high priced truck drivers. Amazon is all about the bottom line so I can't see them paying premium LTL wages for delivery drivers.

    UPS and Fedex have been in business for decades. It takes time on the learning curve to figure out how to do small package effectively, safely and on time.
    I haven't looked at Fedex's balance sheet so I can't speak to financial reasons. There could be plenty of accounting and tax gimmicks to make the deal worthwhile.
    I just dont think it would make sense based on a superficial analysis.

    But it's a discussion..so let's hear other thoughts.
     
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  3. Richard Cranium

    Richard Cranium Well-Known Member

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    Amazon has people delivering things is Prius sized vehicles. Have seen them in vehicles with Uber and Lyft insignia.
    Why would they want to become heavily invested in assets and expensive employees with very expensive benefits?
     
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  4. BIG R GUY

    BIG R GUY Part time Coop Dispatch driver

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    The independent contractor....
    Small vehicle.
    Be your own boss.
    Work when you want.
    Haul people and packages.
    Unlimited earnings potential.

    Downside.
    They control you, and your income.
    You pay for everything.
    Insurance. Vehicle,health,liability,and cargo.
    Fuel. Hope price doesn't go way over 3 bucks a gallon.
    No workers comp.
    Fund your own 401k.
     
  5. truckingBORED

    truckingBORED Your Huckleberry

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    I see a lot of their equipment in the Northeast. Seem to be running doubles as well, plain white, labeled AZNG by the numbers.
     
  6. CenturyClass

    CenturyClass Lead-side Recruit

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    BigRGuy brings up something that I've been thinking about for a long time.

    I can't see how working for Uber/Lyft can be profitable under any circumstance. I am an Accountant by trade and it just seems people only think of the revenue and not the total cost side of things... Make 1500 per week. Ok what are your true costs. Extra wear and tear, fuel, and all the others..

    Makes absolutely no sense to me from a numbers perspective. But I digress.
     
  7. Redracer3136

    Redracer3136 BANNED

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    We see quite a bit of those doubles down here in the Southeast as well.
     
  8. Dracula

    Dracula Well-Known Member

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    Decades ago, I worked for a Coca Cola franchise. At the time the Coke Company just wanted to stay in the coke syrup making end of the business and let the private franchises do the distribution dirty work. The Coke Company decided they wanted total control over syrup and distribution. They started buying back the franchises and part of the deal was that the local employees pay and benefits would not change for, I think, three years. After the grace period, the Coke company reduced the salaries but the benefits were still pretty good. Amazon non union, FedEx non union, Amazon wants to control warehousing and distribution, FedEx is a distribution giant with exsisting ties to Amazon, and Amazon has a godzillion dollars to play with. I've seen it happen before. Who knows.
     
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  9. Canadian Flyer

    Canadian Flyer Speedy Freightshaker #411

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    It's incredibly unlikely. Amazon's business model is just a variation of Walmart's where as few people as possible are employees. They work everyone who works for them, employee or not, into the dirt. The turnover rate at their warehouses is unfathomably high because nobody can keep up with the insane demands. Their delivery people are paid an absolute pittance and many give up after a handful of months.

    If you guys think FedEx treats you like a statistic, Amazon would fire everyone and offer you a really good deal on a gently used tractor if you wanted your job back. Amazon treats their people like dirt, and you should hope they're not interested in FedEx.
     
  10. SwampRatt

    SwampRatt Well-Known Member

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    I agree that such a deal would be highly unlikely. The massive scale of the FedEx operation makes it far more than AMZN would ever need. More likely, IMHO, would be acquisition of smaller regional outfits, serving the largest metro population centers. Then the contractor model, as well as the Post Office could (continue to) cover the rest.
     
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  11. upnorth

    upnorth Super Moderator Staff Member

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    They are in a lease agreement to use our dock space at xpo. Two 53’s show up at 4:00am from the distribution center, they pay us for using the dock space and our staff to break and sort the trailers into runs. At 5:30, a fleet of leased 5 tons come in, load up and take off.
     
  12. Richard Cranium

    Richard Cranium Well-Known Member

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    Doesn’t scare me at all
    Wouldn’t happen before I turn in my badge and keys.
     
  13. truckingBORED

    truckingBORED Your Huckleberry

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    XPO is a much better fit for this scenario, in my opinion...

    How is it officially pronounced anyway, "expo" or X P O?
     
  14. Gideon129

    Gideon129 Active Member

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    Well they are contractors, so their gas, Insurance costs, car payments, anything they eat wile working, the cloths, shoes they wear wile working, and a amount per mile are all tax write offs.
    So you can make decent money if you're in a busy area and keep moving.
     
  15. CenturyClass

    CenturyClass Lead-side Recruit

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    Unfortunately not quite true. I do alot of tax work and there is alot of incorrect assumptions about what can be "written off."
     
  16. Rollin

    Rollin Member

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    A former employee of a customer that I deliver to went to work for a local Amazon warehouse. Turns out they work for a contractor doing delivers from distribution center driving around a little Cube trucks making deliveries

    What's the play on the Whole Foods? Does anybody really get groceries delivered right to their front door step?

    There's a reason why Jeff Bezos is the richest man in America. What do you do when Alexa tells you to go fly a kite? Wal-Mart Target yeah right.
     
  17. blindbaron

    blindbaron Member

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  18. blindbaron

    blindbaron Member

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    Amazon was on tv the other talking about this. It would make sense to have a company with all the logistics all in place never say never!!!!
    Amazon has lots of money our shareholders would love a big payout!!
     
  19. Crazy Trucker

    Crazy Trucker Clown Math Expert

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    Not that it really matters but Bill Gates is worth more than Bezos.
     
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  20. ltltrkr

    ltltrkr Active Member

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    Next no one is a true amazon employee. All the warehouse are controlled thru staffing agencies and all employees work for them including most of the managers. The planes aren't owned , they leased an entire freighter company. The pilots and employees work for the freighter company. Also all of those trailers are leased and pulled by any Gypsy they can find. Amazon does not want employees, this way they can walk away if need be. In Jersey they have 25-30 little green non.cdl trucks that go into NYC for grocery Del. The trucks say Amazon, the uniforms say amazon. In small print on the side trucks owned an operated by some LLC company out of Queens.
     
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