Will Amazon Kill FedEx?
Article

Will Amazon Kill FedEx?

For UPS and FedEx, Amazon's been great for business. Now it's taking business away from them.


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Today, top shipping companies like FedEx count Amazon among its best customers. But could this partnership soon devolve into competition? In this somewhat speculative essay, Bloomberg Businessweek’s Devin Leonard examines the degree to which Amazon’s growth is tied to the continued development of the superfast delivery options available to its Prime members. Given these facts, Leonard offers evidence in favor of the notion that Amazon’s next business target may be the shipping industry. getAbstract recommends this article to shipping industry professionals and Amazon fans.

Summary

In March 2016, e-commerce giant Amazon announced a plan to begin leasing cargo planes as a way to help guarantee ultrafast delivery to its customers. But Amazon didn’t stop there. Two months later, the company secured 20 additional planes, along with 4,000 freight trucks. Then, a China subsidiary obtained an ocean freight-forwarding license. Some insiders believe Amazon could be positioning itself to enter the shipping industry – a move which would place the company in direct competition with its current delivery partners.

About the Author

Devin Leonard is an award-winning staff writer at Bloomberg Businessweek and author of Neither Snow nor Rain: A History of the United States Postal Service.


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