When will fed ex pass ups in volume and earnings?

[It will be fine]

Current Ground market share is 35% to 65%. At FedEx ground they are spending $4 billion to double capacity over the next 5 years. So I'd say around 2020 we'll overtake you guys in the ground market. With our low labor costs if growth slows down we'll just start undercutting on price even more than we do now.

 

[Harry Manback]

Maybe for some but most UPS drivers stick around. FedEx drivers are a rotating door.

There's a carrot at the end of "our" stick.

 

[MAKAVELI]

Current Ground market share is 35% to 65%. At FedEx ground they are spending $4 billion to double capacity over the next 5 years. So I'd say around 2020 we'll overtake you guys in the ground market. With our low labor costs if growth slows down we'll just start undercutting on price even more than we do now.

Counting your chickens before they hatch are you?

 

[olroadbeech]

finding more than enough reason for doing online ordering .RIGHT NOW on the internet Fed ex ground is the cheapest way to get my object from a to b I the consumer never see the homeless looking deadly driver ....i see less $$$

. I wont order anything online unless I get free shipping.

 

[hellfire]

you're not alone the market share has spoken

 

[olroadbeech]

in years to come UPS will gladly lose ground in favor of increasing logistics, robotics and real estate.

 

[brownmonster]

. I wont order anything online unless I get free shipping.

Which is why paying a driver 130k in wages and benefits is unsustainable.

 

[Coalminer2005]

Which is why paying a driver 130k in wages and benefits is unsustainable.

It takes 3 FEDEX drivers to do the work of one UPS driver. You do the math and you're there.

 

[AKCoverMan]

. I wont order anything online unless I get free shipping.

We all know there's no such thing as free shipping.

 

[AKCoverMan]

Currently brand X carries about 9 million packages per day, we carry about 18 million per day. Both companies numbers are growing.

 

[watdaflock?]

The problem with Fedex is they are directly driven by the market. They have no real assets and are extended out on borrowed money and for whatever reason Wall Street loves this. There trying to expand and compete with UPS. It will catch up with them eventually. UPS is built for the long hall and make sound and less risky business decisions.

 

[UPSGUY72]

Current Ground market share is 35% to 65%. At FedEx ground they are spending $4 billion to double capacity over the next 5 years. So I'd say around 2020 we'll overtake you guys in the ground market. With our low labor costs if growth slows down we'll just start undercutting on price even more than we do now.

There is little difference in shipping cost between Fed Ex and UPS. Company switch back and forth all the time. However Fed Ex is willing to lose money on contracts just to get more volume, UPS will not. If you have to lose money to gain volume than something is wrong with your business plan.

 

[IVE GOTTA PACKAGE 4U]

There is little difference in shipping cost between Fed Ex and UPS. Company switch back and forth all the time. However Fed Ex is willing to lose money on contracts just to get more volume, UPS will not. If you have to lose money to gain volume than something is wrong with your business plan.

Didn't work out well for DHL.

 

[Brownslave688]

There is little difference in shipping cost between Fed Ex and UPS. Company switch back and forth all the time. However Fed Ex is willing to lose money on contracts just to get more volume, UPS will not. If you have to lose money to gain volume than something is wrong with your business plan.

Amazon begs to differ.

 

[Brownslave688]

Couldn't even read 4 posts before posting this Huh?

 

[TUT]

However Fed Ex is willing to lose money on contracts just to get more volume, UPS will not.

Both companies are very similar here, obviously no one wants to lose money on a contract, but it can happen and to either carrier. UPS can undercut Fedex and vice versa for a job. How aggressive one carrier is at some point in time, depends on how hungry they are, that can be nationwide, regional or local in focus, many factors play into the strategy. But I wouldn't believe Fedex is more willing to take a job to lose money (it can happen) than UPS. Both companies are extremely competitive with one another. Assume most of the time when there is a switch in carrier that the other came in with a better rate, as you know both carriers take business from the other, #1 reason rates. Why? Because the #1 reason for the buyers is reducing cost. Pretty simple, pretty darn common.

Or here look at it this way, one has to think Amazon is all about cost, they'll use USPS, they'll use regionals for Pete's sake. So you didn't have the majority of business because you were Cadillac's to them, no you had the best overall price and for a good while, better than Fedex. So who was low-balling who with the single biggest shipper?

 

[rod]

. I wont order anything online unless I get free shipping.

I'm the same way. It's amazing that Ebay is still in business with what most sellers try adding on for shipping costs.

 

[Babagounj]

My beef with FEdx is the packages that get into our system . The are placed on a pallet sitting there waiting to be picked up . Sometimes for weeks on end .
The ground driver will only take ground , the air only airs and so on . Actually it sucks for the consumer , never knowing where their packages are .

 

[watdaflock?]

Couldn't even read 4 posts before posting this Huh?

I quoted post #11 and copied your image. Hope this helps.

 

[Overpaid Union Thug]

My beef with FEdx is the packages that get into our system . The are placed on a pallet sitting there waiting to be picked up . Sometimes for weeks on end .
The ground driver will only take ground , the air only airs and so on . Actually it sucks for the consumer , never knowing where their packages are .

This is what customers in my area get fed up with. Along with the shady, suspicious looking, and downright unprofessional drivers.