FedEx Isn’t Worried About Amazon or Uber Delivery
Having a uniformed person with proper identification showing up at your doorstep is an important issue for customers says Mike Glenn, executive vice president of FedEx.
FedEx isn’t worried about Amazon or Uber usurping it as a delivery powerhouse.
The company delivered its Q4 earnings yesterday and on subsequent call, vice president Mike Glenn poo-pooed the new service Amazon’s reportedly testing to allow non-employees to deliver packages, without actually mentioning the company by name.
Amazon’s experimental program, internally called “On My Way,” would recruit retailers in urban areas to store packages. Then regular people wanting to get paid to make deliveries could use an app to see where to pick up and drop off goods as they were going about their day.
Following a question about new tech competitors, Glenn said that getting packages from uniformed delivery workers is important to people.
“Research has indicated time and time again that a uniformed person with proper identification showing up at your doorstep is an important issue for customers. Consistency of customer experience is very critical in that regard. So when you talk about the challenges of building a network, the scale, the input costs, the technology issues and the customer experience required to deliver what customers expect of companies like FedEx and our primary competitors, it’s a pretty tall hill to climb. ... So obviously we continue to monitor these situations and opportunities that pop up from time to time. But we feel pretty comfortable in terms of our strategy going forward and our ability to serve the e-commerce market and our customers.”
FedEx Earnings Report Contains Few Surprises
FedEx Corp. reported adjusted earnings of $2.66 per diluted share for the fourth quarter ended May 31, compared to adjusted earnings of $2.54 per diluted share a year ago, thereby falling short of what many market analysts expected.
For fiscal 2015, adjusted earnings were $8.95 per diluted share, compared to $7.05 per diluted share a year ago.
Without adjustments, FedEx reported a loss of $3.16 per diluted share for the fourth quarter compared to a profit of $2.62 per diluted share a year ago, and earnings of $3.65 per diluted share for the full fiscal year, compared to $7.48 per diluted share last year.
“FedEx pretty much telegraphed to the investment world everything in advance except the big miss on the top line revenue,” said Jerry Hempstead, president of Hempstead Consulting in Orlando. “So yesterday the Street punished their stock.”
Other business analysts noted that the company’s international business was hurt by the strong dollar and falling fuel surcharges.
According to Hempstead, the company has managed to make some financial adjustments to its balance sheet and network to better position itself for the future.
FedEx can also repair their top line, said Hempstead, by “turning their sales force loose” upon UPS and DHL.
“Of late they have been reluctant to push too hard, but FedEx is a very disciplined sales organization and can make any number they set their mind to,” said Hempstead.
Sources: Business Insider & USA Today
Related: Is Amazon About to Disrupt Another Billion-Dollar Market – Third Party Logistics?
Article Topics
FedEx News & Resources
Dexterity AI and FedEx unveil robotics trailer loading technology Berkshire Grey and FedEx expand their robotic automation solutions relationship American Eagle Outfitters’ outside fulfillment game FedEx Announces Receiving First Fleet of Emission Free Delivery Vehicles The Rebound Podcast: Making sense of blockchain Top 20 warehouses: Top 20 refrigerated and 3PL warehouses 2020 FedEx partners with Vecna Robotics as part of automation growth strategy More FedExLatest in Materials Handling
U.S-bound May imports continue to grow, reports S&P Global Market Intelligence AGILOX North America opens new headquarters, announces new CEO Auriemma becomes new CEO of Business Unit Software at Körber Expo Pack México 2024 sets new records Hai Robotics announces move of its Americas headquarters to Atlanta metro Glencore improves recycling plant safety with ELOKON’s proximity detection system National Forklift Safety Day: Yale Reliant operator assistance technology reaches 14 million hours of real-world run time More Materials HandlingSubscribe to Materials Handling Magazine
Find out what the world's most innovative companies are doing to improve productivity in their plants and distribution centers.
Start your FREE subscription today.
June 2024 Modern Materials Handling
Latest Resources
