Though FedEx denied concerns about Amazon building its logistics capabilities to become a potential competitor in December, in FedEx’s just released annual report, the company stated that further growth of Amazon’s services could “reduce our revenue” and “negatively impact our financial condition.” Already competing with UPS, USPS and airlines that offer extended services, FedEx now has to contend with Amazon.com as it uses independent contractors for deliveries as well as invests in a network of hubs, aircraft and vehicles—lowering the cost to ship its own products. Still, according to Goldman Sachs on Business Insider, Amazon would have to invest $122 billion to reach the levels of logistics and delivery network of major carriers.
FedEx Cites Amazon as Competition for First Time
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