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FedEx execs not concerned about Amazon’s growing shipping and delivery ambitions

FedEx doesn’t see Amazon as a major threat, even as the tech giant plows major resources into expanding its shipping and delivery operations.

On a call with investors Tuesday, FedEx CEO Fred Smith said Amazon is a “good customer of ours.” He went on to say that “we don’t see them as a peer competitor,” referring to Amazon.

“We have very strong strategies, well understood by the management team,” Smith said.

“The addressable markets that we deal with are growing. And as we’ve said over and over again, we’ve grown market share, particularly in the sectors we want to grow.”

It has long been speculated that Amazon’s growing delivery and shipping operations could take market share from companies like FedEx and UPS. Analysts renewed that prediction following last week’s announcement of a new Amazon Air hub in Texas. 

Raj Subramaniam, FedEx’s chief marketing and communications officer, said FedEx isn’t concerned about the Amazon Air expansion and that “our volumes in the domestic networks are continuing to increase.”

In addition to expanding its air delivery operations, Amazon is also putting more resources behind ground shipping. Last month, Amazon confirmed plans to directly hire thousands of full-time seasonal employees across the U.S. to deliver packages from fulfillment centers to customer doors this holiday season.

Earlier this year, Amazon announced the new Amazon Delivery Service Partner program, which lets entrepreneurs start and run their own companies, delivering items purchased on in distinctive blue Prime-branded shirts and vans.

Source: GeekWire

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