[Abstract] FedEx executives said that Amazon needs to spend tens of billions of dollars and years to build their own rival logistics services.


BI Chinese station on March 17th reported

for the electricity supplier giant Amazon may set up a variety of reports of independent logistics system, FedEx said it is not worried, and intends to dilute these reports, called the headlines grab news.

in Wednesday’s earnings conference call, executive vice president of FedEx Mike Glen (Mike Glenn) the analysts said, to create rival FedEx logistics service will take too much time and the cost is too high.

Glen said: "the recent reports of a new company will constitute a competitive relationship with the United States three logistics enterprises, the news quickly grabbed the headlines, but the fact is that this will be a difficult task, because of the need of tens of billions of dollars in capital and years to build scale and density enough. Copy the current FedEx and similar network system."

Glen reiterated its Amazon still maintain good relations of cooperation, large retailers often need to have their own distribution network, so as to serve its own needs, is the main local storage of goods circulation. In addition, FedEx’s service system is far more than a simple local distribution, which covers many aspects, from express, ground transport, and then to air.

Glen went on to say: "there are a large number of local logistics companies in the United States to send parcels. This is not the area of FedEx’s day-to-day operations."

Glen also said: "we have the ability to help collect and transport, 95% of the earth on the consumer express delivery, not to mention the business to two days at a time, realize door-to-door transportation, and complete the customs clearance."

at present, there are a lot of rumors on the market, Amazon plans to build its own logistics system, in order to achieve competition with FedEx and UPS. Amazon recently leased 20 cargo aircraft, and purchased thousands of their own trailers, and in the annual document for the first time will be referred to as a transport service provider".

in fact, on the day before, the Royal Bank of Canada capital market (RBC Capital Markets) analyst Mark – Mahaney (Mark Mahaney) in a research report pointed out that Amazon is working to set up its global supply chain network to reduce the cost, but he also pointed out that the plan of the company may need to spend a few years to really work.

Mahaney wrote: "in short, we believe that Amazon may be committed to taking over more of its global supply chain work. However, the full formation of the Amazon parcel delivery system may take several years, so we think FedEx and UPS have time to respond." < > (Eru)