In the next 24 months, #FedEx will either be acquired or lose an additional 40% in value. Likely acquirer = #Walmart. Gangster move = a merger with #Shopify.
Very interesting reading that contains some truths and many points of reflection. However, there are statements and arguments with which I personally disagree. While on the one hand it is certainly true that eCommerce is the only transport sector that has experienced double-digit growth in recent years, it is not equally true that this has created enormous opportunities for the logistics sector. eCommerce deliveries are the least profitable of all! The web customers have been accustomed to paying almost nothing, while moving men and means has a high cost. Chasing Amazon on this terrain, without being Amazon is simply madness. Amazon does not make money with logistics, it does logistics to consolidate and protect its business, which allows it to continue making money. Comparing FedEx to Amazon doesn't make much sense.All this to say that Amazon's growth did not happen at the expense of FedEx, but by opening new paths, and doing things that had never been done before. The decline in FedEx shares, however, should be sought elsewhere. Scott, I would wait to celebrate FedEx's funeral. If FedEx renews itself and gives itself the right strategy, it will survive this difficult moment as it has done other times in its history.
In general, I have been less than impressed with FedEx, a sentiment that has vastly increased over this past holiday season.
Interesting. We will see about that. from what I know Fedex is not only eCommerce business.
Luiz Pacheco is this for real ? Guilherme Gatti
That would be a sad day...especially if it was Walmart. FedEx grew up on a "People First" culture that made it the great company it is today. If any parent was anything less it would be devastating for both employees and customers. Lets hope this prediction is unfounded.
They can't deliver a package accurately to save their business.
Gene Sherman
4y
End result may be a Walmart / Amazon duopoly. In which case we all lose.
It would have been hard to believe this a few years ago. But now a bigger stronger player moves into your space who doesn't need to turn a profit...hard to compete with!
Mike Thomsen
4y
So would you say you're calling for a FedExit?
Operations Management | Project Management | Contracts Compliance | Quality | Service Assurance | Programs Execution
3yHi Scott, I would like to point out that FedEx has not been acquired for now, and has not lost 40% of its value, in fact FedEx shares have doubled in value since last year.