Should You Consider Amazon a Threat When Your Buy a FedEx Route?

Photo by Bart Jaillet

Amazon is a giant in the online retail space. It seems as if every other retail news story is about some new Amazon innovation. So, is Amazon’s growth a threat to your FedEx business?

The answer is no, not likely. 

FedEx is a master of contingency planning with nearly 50 years of experience behind it. With the distant cloud of Amazon looming over its head, FedEx has a vast infrastructure to push back an oncoming threat. 

According to the Wall Street Journal, “FedEx has roughly 650 aircraft, 150,000 trucks, 400,000 employees and 4,800 operating facilities globally to handle about 12 million shipments a day.

Amazon is talking only of piloting a delivery program of their own in Los Angeles in Fall 2018. This small, limited pilot program is light years and tens of millions of dollars away from the large network that FedEx oversees.

Moreover, FedEx business is not dependent on Amazon deliveries. 

Out of every 100 packages on a FedEx truck, only two packages are Amazon boxes. Even if Amazon pursues its own transportation options, FedEx will lose a negligible 2% of business. Plus, FedEx experiences substantial non-Amazon growth each year. 

As you evaluate FedEx routes, Amazon’s business and logistics should be a lesser concern of yours.

Need Help Thinking Through All Your Options?

If you are interested in buying a FedEx Ground route, check out our listing page for operations currently on the market.

If you need more help with the details and navigating contract negotiations, contact us for consulting.

And, as always, give us a call and we can help point you in the right direction.