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<blockquote data-quote="vantexan" data-source="post: 3272262" data-attributes="member: 24302"><p>Actually the reason FedEx was so intent on starting Ground is that there&#039;s more profit per package shipping by truck than by plane.&nbsp; FedEx will always have an overnight delivery service by plane, but Ground is where the money is at.&nbsp; It&#039;s the reason UPS can afford to pay it&#039;s drivers more.&nbsp; It&#039;s very expensive to fly packages.&nbsp; And since FedEx Ground pays it&#039;s drivers much less than what UPS does, not to mention no benefits, it can undercut already low UPS prices.&nbsp; As it&#039;s system grows it&#039;ll continue to take business from UPS, which is kind of stuck with it&#039;s union wages and benefits.&nbsp; And before anyone starts saying I&#039;m defending FedEx I&#039;m just pointing out the reality of the situation.&nbsp; FedEx has figured out how to insure growth in an industry where it seemed the market was stagnant.&nbsp; And literally everyone working in the industry will be affected.&nbsp; As FedEx Ground eats up market share it will become more difficult for UPS to continue to pay high wages with great benefits.&nbsp; Will be interesting how that plays out in future contract negotiations.</p></blockquote><p></p>

[QUOTE="vantexan, post: 3272262, member: 24302"] Actually the reason FedEx was so intent on starting Ground is that there's more profit per package shipping by truck than by plane. FedEx will always have an overnight delivery service by plane, but Ground is where the money is at. It's the reason UPS can afford to pay it's drivers more. It's very expensive to fly packages. And since FedEx Ground pays it's drivers much less than what UPS does, not to mention no benefits, it can undercut already low UPS prices. As it's system grows it'll continue to take business from UPS, which is kind of stuck with it's union wages and benefits. And before anyone starts saying I'm defending FedEx I'm just pointing out the reality of the situation. FedEx has figured out how to insure growth in an industry where it seemed the market was stagnant. And literally everyone working in the industry will be affected. As FedEx Ground eats up market share it will become more difficult for UPS to continue to pay high wages with great benefits. Will be interesting how that plays out in future contract negotiations. [/QUOTE]

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