Category: Industry News

FedEx Corp. faces an in-depth probe into its bid to take over TNT Express NV just two and a half years after European Union regulators thwarted United Parcel Service Inc.’s attempt to buy the Dutch company.

The FedEx-TNT tie up may cut competition in the market for small packages and lead to higher prices, the European Commission, the EU’s executive arm, said Friday.

The EU “said all along they were going to leave no stone unturned. How could they not do an in-depth review when they rejected the UPS-TNT merger?” said Kevin Sterling, an analyst with BB&T Capital Markets, who recommends holding FedEx shares. “Think of the scrutiny they gave UPS-TNT. They have to do this. They absolutely have to.”

An aircraft technician and his boss who work at FedEx’s Los Angeles International Airport location are suing the courier giant for allegedly ignoring their complaints that the company put profits ahead of safety by not maintaining its aircraft consistent with FAA safety requirements.

Stanley Langevin and Mark Collins filed the whistleblower complaint Wednesday in Los Angeles Superior Court. Collins, who is black and also is Langevin’s supervisor, additionally alleges racial discrimination. The suit seeks unspecified damages.

It won’t be easy for Uber and other tech upstarts to gain a foothold in the package delivery business.

In the past few years, Uber has dramatically upended the taxi business with its cheaper, crowd-sourced alternative to traditional cabs. Its success and rapid growth in this field have scored Uber a $41 billion (and rising) valuation.

More recently, Uber has looked to expand into adjacent markets. If it has thousands of drivers in a big city ready to transport customers from point A to point B at all times, why not have them transport packages, too? That’s exactly what Uber is trying to do. And it’s not the only tech company trying to get a foothold in the package delivery business.