FedEx Is Finally Changing Its Tune on Amazon
If you'd asked FedEx's (NYSE: FDX) management at the beginning of the year whether Amazon (NASDAQ: AMZN) poses a meaningful threat to its business, they would have said something like, "We don't see them as a peer competitor at this point in time. For many reasons, we think it is doubtful that will be the case."
I know that because it's exactly what management said during its second-quarter earnings call when asked about it in November.
But FedEx has done a 180 on Amazon. In June, it said it wouldn't renew its FedEx Express air cargo contract with Amazon. In its 10-K report filed in July, management noted: "Some high volume package shippers, such as Amazon.com, are developing and implementing in-house delivery capabilities and utilizing independent contractors for deliveries, and may be considered competitors." And now it's ending its last-mile ground delivery contract with Amazon, according to a Thursday report from Bloomberg.
Source Fool.com
