Business Wars FedEx vs UPS | FedEx, UPS and Amazon’s Close Ties to the Postal Service | 7
Sep 7, 2020
Sucharita Kodali, a digital business strategy expert at Forrester Research, dives into the intricate web of the shipping industry, focusing on FedEx, UPS, and their ties to the U.S. Postal Service. She discusses Amazon's strategic moves to reduce reliance on these shipping giants. The conversation reveals how both FedEx and UPS utilize USPS for last-mile deliveries and the potential fallout of FedEx's plans for independence. With shipping rates and operational partnerships in flux, what does the future hold for logistics?
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Last-Mile Delivery
- FedEx and UPS use USPS for last-mile residential deliveries.
- USPS goes to every US address daily, making it cost-effective for other carriers.
SmartPost and SurePost
- SmartPost (FedEx) and SurePost (UPS) are cheaper delivery options.
- They utilize USPS for the final delivery stage, making them cost-effective.
FedEx's Shift
- FedEx plans to handle more SmartPost packages themselves.
- This is likely due to increased delivery density making it more cost-effective.