New Dropbox

[Godzilla55]

Anyone else come across one of these yet? Is this the beginning of a merger? Thoughts?

 

[Star B]

No. That dropbox just got the new labels. they have been marked "accepts all packages but ground might take an additional day" for a year or two now.

 

[!Retired!]

Ground and Express will never merge, though they're walking a very fine line right now

 

[yadig]

Ground and Express will never merge, though they're walking a very fine line right now

If grounds earning keep dropping then you will see a merge. I’m just not sure how that merge is gonna look. I’m guessing all of FedEx will be contractors. It’s fat Freddy’s dream of a cheap labor force without benefits!

 

[MAKAVELI]

If grounds earning keep dropping then you will see a merge. I’m just not sure how that merge is gonna look. I’m guessing all of FedEx will be contractors. It’s fat Freddy’s dream of a cheap labor force without benefits!

He may have that dream but COVID changed everything. I think the company will have no choice but to follow the UPS model to survive or get swallowed up by Amazon.

 

[AB831]

Looks like Fat Freddy might be holding his cards law enough for you to see his hand.

 

[Star B]

He may have that dream but COVID changed everything. I think the company will have no choice but to follow the UPS model to survive or get swallowed up by Amazon.

Exactly, I don't think with grounds performance in the past few years is going to make any investors confident that they will be sustainable if Express goes the ground model. They are just going to point at UPS and go "Well, they make it work, why can't you?"

 

[yadig]

Exactly, I don't think with grounds performance in the past few years is going to make any investors confident that they will be sustainable if Express goes the ground model. They are just going to point at UPS and go "Well, they make it work, why can't you?"

True. It’s like comparing two football teams. Why can’t Purdue beat the LA rams? One has better players than the other

 

[MassWineGuy]

Boxes formerly said no Ground accepted. But no one listened and there was always lots of Ground stuff in them.

 

[throwaway10]

They switched to these that say ground about 5-6 years ago in our area

 

[MAKAVELI]

They switched to these that say ground about 5-6 years ago in our area

Your area is an outlier.

 

[bacha29]

Exactly, I don't think with grounds performance in the past few years is going to make any investors confident that they will be sustainable if Express goes the ground model. They are just going to point at UPS and go "Well, they make it work, why can't you?"

Ground is doing just fine. The issue is that the enormous sums spent on expansion have to be expensed against Ground's individual operating results given that units operate independently. When they get all that charged depreciation choked down it will be well positioned to produce the double digit margins it once produced. Too bad they spent all that money on increasingly disgruntled contractors who have to toss in the cab anything that can walk, talk or crawl on the ground like a reptile.

 

[yadig]

Ground is doing just fine. The issue is that the enormous sums spent on expansion have to be expensed against Ground's individual operating results given that units operate independently. When they get all that charged depreciation choked down it will be well positioned to produce the double digit margins it once produced. Too bad they spent all that money on increasingly disgruntled contractors who have to toss in the cab anything that can walk, talk or crawl on the ground like a reptile.

We’ll see