Amazon, Uber pose challenges to FedEx, UPS delivery monopoly - Marketwatch
Legacy delivery companies like FedEx Corp. and United Parcel Service Inc. played a huge role in the decline of the U.S. Postal Service, but it’s time for them to pay the piper--technology has brought them face-to-face with their own competitive threat: Amazon.com Inc., Uber and other startups.
Mobility, brought upon by the proliferation of smartphones, apps and connected devices, has created a climate of instant gratification and given way to a fast-growing market for on-demand delivery services, such as Postmates.
“It’s a changing of the guards,” said Roger Kay, a technology analyst and founder of consulting company Endpoint Technologies Associates “If the old guards can’t provide a comparable experience and comparable price, in some sense they aren’t going to be competitive anymore.”
Legacy delivery companies like FedEx Corp. and United Parcel Service Inc. played a huge role in the decline of the U.S. Postal Service, but it’s time for them to pay the piper--technology has brought them face-to-face with their own competitive threat: Amazon.com Inc., Uber and other startups.
Mobility, brought upon by the proliferation of smartphones, apps and connected devices, has created a climate of instant gratification and given way to a fast-growing market for on-demand delivery services, such as Postmates.
“It’s a changing of the guards,” said Roger Kay, a technology analyst and founder of consulting company Endpoint Technologies Associates “If the old guards can’t provide a comparable experience and comparable price, in some sense they aren’t going to be competitive anymore.”