Business Wars FedEx vs UPS | Deal with the Devil | 6
Sep 2, 2020
The shifting terrain of shipping sees FedEx and UPS grappling with the rise of Amazon as a formidable competitor. After a disastrous holiday season in 2013, both companies face mounting pressures to deliver on time. As Amazon pivots towards in-house logistics, previously dependable partnerships turn into challenges. The intense rivalry intensifies, with FedEx opting to sever ties while UPS seeks to strengthen its relationship, reshaping the logistics landscape. The implications for e-commerce and healthcare are revolutionizing consumer access.
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Christmas Shipping Crisis 2013
- Christmas Eve 2013 saw shipping delays for UPS and FedEx, frustrating customers like Anne Johnson, whose son's Kindle Fire was stuck in transit.
- This anecdote highlights the widespread customer dissatisfaction and the reputational damage both companies faced.
FedEx and UPS Christmas Crisis Response
- Both UPS and FedEx faced criticism for Christmas delivery failures in 2013 due to high volume and weather.
- FedEx CEO Fred Smith acknowledged the issue and implemented measures like refunds and allowing customers to pick up packages.
Amazon's Shipping Strategy Shift
- Amazon's shipping delays prompted Bezos to consider bringing shipping in-house to gain control and avoid customer blame.
- This marked the beginning of Amazon's move to become a competitor to FedEx and UPS.