26 Jun 19

FedEx faces new competition from Amazon and Uber

As Amazon is building out its own delivery network, FedEx has decided it won’t renew its shipping contract with the internet shopping giant. At the same time, Uber Freight is in the starting blocks.

This means FedEx, the second-largest international courier company, trailing only UPS, will have not one but two new rivals. Amazon in particular is not to be underestimated.

Over time, Amazon wants to become the leading delivery service for its own business and handle logistics for other e-commerce companies. Uber, on the other hand, wants to use its fleet management software to enter the market for what it calls “less-than-truckload shipping”, matching trucks that have available space with people who need to ship more than a package but less than a full truck.

Last year, Amazon announced it had ordered 20,000 Mercedes Sprinter vans. The company also acquired a number of aeroplanes. Nevertheless, the exact extent of Amazon’s delivery plans remain unclear.

Authored by: Benjamin Uyttebroeck