Justatitle

Account Executive

FedEx down 24%… sign of things to come?

If you haven’t seen FedEx announced a bad quarter and that it is on a hiring freeze, will close 90 stores and that demand for goods and services to be moved has declined. People will consider this to mean that the economy is likely to follow and decline as goods and services being exchanged at a high demand usually means a good economy. Thoughts from the WR and the impending and likely recession to follow?

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🌎 Economy

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boredAnti

Tycoon

That One Guy

I agree with @Kosta_KonfuciusAmazon has a huge part to play in this. However, how is UPS looking? Are their numbers down as well? I haven't checked.

Justatitle

Big Shot

Account Executive

UPS hasn’t announced yet but their shares are down because of FedEx

CuriousFox

WR Officer

🦊

They are going through leadership changes and are tightening up a bit. I think it's fine.

Kosta_Konfucius

Politicker

ERP Sales

Definitely not a good sign, but I think a big reason profit is down is due to Amazon continuous grow in market share

SADNES5

Politicker

down voters are marketing spies

FedEx is focusing on core business and got rid of tons of 3rd party last mile. It's going to not end well for them. Follow the new startups in the scene that do 3PL/last mile. They will get the contracts when shareholders start to revolt.

Justatitle

Big Shot

Account Executive

Yes, this is something that has been pointed out several times. Amazon has dumped money into this part of their business and it might be starting to show. Time will tell.

jefe

Arsonist

🍁

Can't ignore the Amazonian elephant in the room.

SADNES5

Politicker

down voters are marketing spies

This is my world.
FedEx is down due to vertical last mile, they got rid of it 3rd party delivery and are suffering from it. AMA

ChumpChange

Politicker

Channel Manager

Hey @SADNES5! I was about to tag you into this.

SADNES5

Politicker

down voters are marketing spies

😂😎

Justatitle

Big Shot

Account Executive

So this is a case of make bad decisions and find out the cost of them?

SADNES5

Politicker

down voters are marketing spies

Yeah, some non industry new hire from finance probably saw the expense line on 3P last mile deliveries and thought - we can do this! We already have a network... Without realizing the 24/7 model and residential isn't their bread and butter. Fu*k around. Find out. Exactly

Justatitle

Big Shot

Account Executive

Thank you for the insight. It is appreciated

Pachacuti

Politicker

They call me Daddy, Sales Daddy

Past results are not always indicative of future results...that said, the economy is an up/down roller coaster right now.

SaaSam

Politicker

Account Executive

We're headed into some tough times, economically speaking. The writing has been on the wall for some time now.

Recessions are where empires are built and fortunes are made. If you have the means to buy when everyone else is selling you'll come out of this on top.

Honestly, FedEx isn't going anywhere. Sure, it's lost some of it's market share to the likes of Amazon but they are here to stay. In fact, I'm going to go buy some FDX now.

ADK

Opinionated

VC Associate

Next to amazon, also because of unpredictable energy prices recently. ıt's not only recession but pointing towards stagflation unfortunately at this point

ChumpChange

Politicker

Channel Manager

Logistics warrior chiming in. Overall lack of strategic vision and execution. FDX is late to the party eliminating non-revenue driving service offerings that end up impacting their revenue and operational costs. Specifically, co-op last mile residential delivery. Carriers are now becoming more specialized recently with middle and last mile carriers - Pandium, AxleHire, X-Delivery, etc.FDX is also getting heat from their ICP Ground operators, putting more fuel into the fire. Oddly enough... UPS saw this pre-pandemic and started to shut down/sell off its non-revenue driving operations (*cough* UPS Freight *cough*). Say what you want about Carol B. Tomé (UPS CEO) but she is known for running a tight ship.

NotCreativeEnough

Big Shot

Professional Day Ruiner

Fedex sucks. UPS is a much better shipping service.

Add to it that Amazon (the largest online retailer) uses their own shipping delivery methods or USPS. They make up a major chunk of online purchases and therefore them doing their own shipping will impact shipping services.