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FedEx CEO isn’t worried about Amazon’s potential plan to have non-employees deliver packages
F. Carter Smith/Bloomberg via Getty Images
FedEx CEO Fred Smith isn’t worried about Amazon or Uber
FedEx CEO Fred Smith isn’t worried about Amazon or Uber usurping it as a delivery powerhouse.
The company delivered its Q4 earnings this morning and on subsequent call, Smith poo-pooed the new service Amazon’s reportedly testing to allow non-employees to deliver packages, without actually mentioning the company by name.
Amazon’s experimental program — internally called “On My Way” — would recruit retailers in urban areas to store packages. Then regular people wanting to get paid to make deliveries could use an app to see where to pick up and drop off goods as they were going about their day.
Following a question about new tech competitors, Smith said that getting packages from uniformed delivery workers is important to people.
Here’s his answer, via USA Today:
“Research has indicated time and time again that a uniformed person with proper identification showing up at your doorstep is an important issue for customers. Consistency of customer experience is very critical in that regard. So when you talk about the challenges of building a network, the scale, the input costs, the technology issues and the customer experience required to deliver what customers expect of companies like FedEx and our primary competitors, it’s a pretty tall hill to climb. … So obviously we continue to monitor these situations and opportunities that pop up from time to time. But we feel pretty comfortable in terms of our strategy going forward and our ability to serve the e-commerce market and our customers.”
Besides Amazon, Uber has also been struggling to create its own logistical network for delivering food, groceries, and other goods, and has six partners so far. Startups like Postmates and Instacart are also tackling same-day delivery, and Google has a hat in the ring, too, with Google Express.
Disclosure: Jeff Bezos is an investor in Business Insider through his personal investment company Bezos Expeditions.
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