FedEx does not see Amazon's growing own delivery network as a threat. Indeed, the US carrier thinks Amazon will remain a major FedEx customer for a long time to come.
That was stated by Mike Glenn, executive vice president of FedEx, after investors raised concerns about Amazon's moves, Business Insider writes. Some Wall Street investors reportedly believe Amazon wants to make big moves with its own delivery network. Indeed, earlier this year, it was announced that Amazon wanted to lease aircraft in order to control its own air transport. It also announced that it wanted to invest in sea freight. The etail giant now frequently uses companies such as UPS and FedEx, but seems to want to reduce this use. Especially during busy periods, Amazon does not want to be dependent on external carriers.
'Amazon relatively small customer'
According to Glenn, it is important that it is clear to both companies how they can continue to help each other in the future. "At least we know that Amazon will continue to make full use of the FedEx portfolio in fiscal year 2017," Glenn said. In addition, the vice president reported that Amazon's contribution to FedEx's overall profit margin is limited. "It is important to remember that no single FedEx customer contributes more than 3 per cent in profit," he said.
Editorial LogistiekProfs
