FedEx Finally Admits Amazon Is a Rival to Be Reckoned With
FedEx (NYSE: FDX) has finally admitted what everyone could see was obvious: Amazon.com (NASDAQ: AMZN) is a logistics industry competitor. The global freight carrier's annual 10-K report for the first time said that the capabilities that Amazon has developed over the years -- including delivery vehicles, aircraft, and airport hubs for which it is "investing significant capital" -- now allows it to be considered a competitor.
It was undoubtedly becoming difficult to ignore the elephant in the room when even the elephant was trumpeting it was a competitor. Amazon said in its own annual filing that it viewed "companies that provide fulfillment and logistics services" to be competitors, so it was time to end the charade that the online retailer was simply a benign entity.
Air cargo is only one area where FedEx will feel competitive pressure from Amazon. Image source: FedEx.
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