Here's a guy saying that UPS smokes FedEx in profits because Ground uses contractors and not because UPS has daily domestic volumes of >27 million packages compared to FedEx Express/Ground combined daily volumes of 16 million packages.
UPS smokes FedEx on margins, not just volume. Ttku son......
Again that goes back to service, hard to build your ground network when most major corporations trust UPS to handle the bulk of their ground freight, not FedEx.
Considering that their higher margin service makes up a greater percentage of their revenue mix, and they have higher volumes, they should.
FedEx has had a cheaper labor force for more than 20 years. I suggest you might want to take a basic arithmetic class.....
You mean the company that was around since 1907 has more legacy customers than the company that didn't exist until 90 years later?
66 years later?
Whatever
It matters to us FedExers. If it was started in '97 then who was I working for for 11 years at that point? Yeah, yeah, I'll crawl back under my rock.
You’d best. Lol
Both companies' operating expenses for their most recent fiscal year were nearly identical.
So UPS that has a higher paid all employee workforce has about the same operating expenses as FedEx who has lower paid employees and a large contractor operation? Do you even comprehend your own words?
I mean, we could go into why the smaller company has the same amount of operating expenses as the larger one, but that would lead us to comparisons of revenues, variable vs fixed expenses and their effects on margins, and so on.
It's probably for the best that you just keep saying FedEx would be more profitable if they increased their expenses.
I don't think legacy customers have anything to do with it and I don't think it changes anything I've said. Do you think potential customers would have more confidence in FedEx or UPS with one being almost entirely contracted out and the other one not? Who do you think they are going to invest in?
I'd say that the average person doesn't know there's a Ground and an Express, let alone care that one of them is contractors, but the fact that Ground's volume doubled over the last decade says it for me.
You're right they don't but customers do or they find out real quick. A contractor model maybe able to compete on price temporarily, but not service. If service falls apart cheap labor won't matter much.
Lying to customers went out when tracking went in.
That's exactly what they did in AK, HI and now Canada.
Wrong. No single contractor or group of contractors will tell FDX what it can and cannot do. The reason being is that there is no judicial oversight with the power to bind FDX to single term of that damn contract.
