Business Wars FedEx vs UPS | We’re Gonna Need a Bigger Plane | 3
Aug 24, 2020
FedEx battles against government regulations to grow its fleet and compete effectively. Meanwhile, UPS, recognizing the urgency of the rivalry, decides to purchase its own aircraft for next-day delivery services. Tension escalates as FedEx's strategies push for deregulation, leading to a significant political maneuvering that reshapes the industry. The podcast dives into the fascinating strategic shifts during this 1980s delivery war, highlighting bold decisions that changed the game for both companies.
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The Courier Pack Solution
- During the 1974 UPS strike, FedEx faced capacity issues due to increased demand.
- To address this, they promoted courier packs, smaller document envelopes, to maximize plane space.
Lamb's Foresight
- George Lamb, a UPS VP, noticed FedEx's growth and urged UPS to consider them as competition.
- His colleagues dismissed FedEx, believing their service was too niche.
Fighting for Deregulation
- Fred Smith testified before Congress, arguing for deregulation to allow FedEx to buy larger planes.
- FedEx launched a campaign, including grassroots efforts, which led to the 1977 deregulation bill.
