Amazon Threat to FedEx Is No Longer ‘Fantastical’
Reports that FedEx is offering discounts for its air-delivery network shows how much the e-commerce giant has already disrupted the logistics industry.
E-commerce has changed the game.
Photographer: Christopher Lee/BloombergFedEx Corp. may finally be waking up to the threat Amazon.com Inc. poses to its business model.
The logistics company is offering big discounts to help fill the planes in its Express delivery network with more e-commerce shipments, according to the Wall Street Journal, which cited people familiar with the matter. The deals are being used to woo customers away from rival United Parcel Service Inc., or to convince them to switch from FedEx’s cheaper ground offerings, the newspaper said, citing people familiar with the matter. For some customers, shipping goods via FedEx’s two-day air service may now cost about the same as shipping them through the ground division.1