FedEx isn’t worried about Amazon becoming a competitor

FedEx is not concerned about recent reports of Amazon possibly building up an in-house shipping network, and downplayed it as mere “headline grabbing” stories. During its earnings call on Wednesday, FedEx Executive VP Mike Glenn told analysts that building a service that rivals FedEx would simply take too long and cost too much. “While recent stories and reports of a new entity competing with the three major carriers in the United States grabs headlines, the reality is it would be a daunting task requiring tens of billions of dollars in capital and years to build sufficient scale and density to replicate existing networks like FedEx,” Glenn said. He reassured that his partnership with Amazon remains strong and that large retailers have always had their own delivery network to serve their own shipping needs, primarily to move items in and out of warehouses locally. Plus, FedEx’s service portfolio far exceeds simple local delivery, spanning everything from express to ground to freight. “There are hundreds and thousands of local delivery companies in every market in the country delivering parcels,” Glenn continued. “That’s not the market that FedEx competes in on a day-to-day basis.” “We have the capability to pick up, transport and deliver an item from 95% of the human beings on the planet, much less every business in the world, within one to two business days, door to door, customs cleared,” he added.