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As Amazon Air Expands, FedEx And UPS May Suffer

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Amazon aims to compete with FedEx and UPS in the logistics and shipping industry. That's what analysts told CNBC after Amazon Air recently expanded to 50 planes and announced it will open a $1.5 billion air hub in Northern Kentucky in 2021. Amazon is handling up to 26% of its own shipping, meaning FedEx, UPS and the U.S. Postal Service are losing a portion of Amazon's business. FedEx says it's not worried, but Morgan Stanley reports the major shippers have already lost 2% revenue to Amazon Air. » Subscribe to CNBC: http://cnb.cx/SubscribeCNBC About CNBC: From 'Wall Street' to 'Main Street' to award winning original documentaries and Reality TV series, CNBC has you covered. Experience special sneak peeks of your favorite shows, exclusive video and more. Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: http://cnb.cx/LikeCNBC Follow CNBC News on Twitter: http://cnb.cx/FollowCNBC Follow CNBC News on Google+: http://cnb.cx/PlusCNBC Follow CNBC News on Instagram: http://cnb.cx/InstagramCNBC #CNBC #Amazon #AmazonAir As Amazon Air Expands, FedEx And UPS May Suffer
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Text Comments (3544)
CNBC (1 year ago)
Which industry do you think Amazon will disrupt next?
JR F (2 days ago)
They’ll be hit with antitrust. It won’t be long.
Pramod Bellamkonda (4 days ago)
Health insurace
Amron Experimental (17 days ago)
#AmazonAfter
LEGO Duck (21 days ago)
All of them
Xplosion FPV (1 month ago)
drone
c4manke (11 hours ago)
Could we get Amazon to buy Illinois and streamline the politicians and taxes?
1quickster (16 hours ago)
If they keep doing how they do to their workers all I can see are lawsuits
The Rolls Royce Trent (16 hours ago)
#Amazon "Wants The WHOLE Pie" And Be The Only #Business InThe World including No More #WalMart
tinmisuun (1 day ago)
FedEx sounded like Microsoft when the iPhone came out.
MD ZAKIR SAUDAGAR (1 day ago)
Jeff I dont want to reveal here it might be Others pretending to be You......Alhamduallah Inshallah.....
Silver Fox (2 days ago)
What about our climate. Apparently making money comes before necessity.
B O B Spelled backwards (3 days ago)
CANT ANYONE see what they are doing? They want to replace the USPS Fed Ex and Ups. They will have capital to buy the later 2 soon. ALL industries will suffer. They've screwed the trucking also brokering their own loads out for nothing. This company needs to be stopped. They already have an Artificial intelligence plan to make us all puppets in the future, and their agenda with that along with google, tesls, and Facebook is outright scary.
Pileits (3 days ago)
Amazon pay your flight crews a living wage like FedEx and UPS pay. Pilots are NOT slaves...STOP treating them like they are...PAY THEM right. If you don''t you WILL have a PIlot Union taking over your airline SOON
Frank V (3 days ago)
If I was fedex or ups I would strong arm Amazon and force them out the logistics sector
MSP 638 (4 days ago)
Amazon open a branch to transport passengers world wide
Z L (5 days ago)
Fitzgerald was lying through his teeth. No good businessman would say that their competitor is gaining a foothold. 😂😂😂
Shedy Dee (5 days ago)
Amazon is not good for the economy.
DeLon Christensen (8 days ago)
Amazon, FB, Google and others are acquiring too much power. Perhaps government is beyond the point of no return in modifying/controlling such power and can't do much. Money/power is what Bloomberg has in great abundance. Conceivably he can/will buy the presidency of the United States. That sort of power is fraught with implications for the electoral system. Scary.
horste breedow (8 days ago)
Great now pilots of large aircraft will be making 16.50 per hour.
mauricio rincon (9 days ago)
Antitrust?
Cherokee Mack (10 days ago)
Well that would be okay, when I use to ship regularly, stuff sold on ebay, ups would regularly damage packages and then not do anything about it. Guess what goes around comes around. Treat every customer with respect, or maybe they will buy their own fleet of planes and trucks and stand up in bbn ur azz hole.
avflyguy (11 days ago)
USPS has been losing money for as far back as I can remember. Why? They are sub-standard and always will be. Our local office acts like they are doing me a favor for making me wait in line in a crappy facility, mixing business people at counters and ones that can have one or two items that could be in and out in a couple of minutes. I am actually surprised they don't use horses for their logistics network hubs. They can't even get mail to the correct address. At least once a week, our carrier that has been on this route for at least the last 5 years, doesn't even check the address or name. Just shoves stuff in our box and shoves our stuff in other peoples boxes. It's beyond rediculous. I have no pity for them whatsoever.
Nun Ya (11 days ago)
As an online seller who ships hundreds of packages a week, this report is extremely inaccurate.
flipmane (14 days ago)
Amazon is building a bubble network. Everything they do is controlled by them. FedUp have a broad network that looks like a tree, and only offer a handful of shipping services. The fact that the Fedex spokesman was not nervous and trying to belittle Amazon's network, means that his analysts need to step up their game.
Javier Hernandez (15 days ago)
its called monopoly
Chris Barr (17 days ago)
The Government will eventually break Amazon into many smaller pieces to reduce their domination of so many areas of the economy. Their is true risk will too much concentration in one company operating such a huge chunk of the economy.
Tom Smith (19 days ago)
Amazon is the devil. To bad Amazon cannot compete with the US Government. Could you imagine a truly leaner and more efficient Government.
Liam Senzamici (22 days ago)
Ups is the best 👍☘️☘️
Uthman Alaoui (23 days ago)
People say amazon will become a monopoly and yet refuse to fight against it and shop elesewhere. There are so many stores that price match them anyways.
Brad Young (24 days ago)
Some people will say you need to reign Amazon in. I say dont be like Blockbuster. If you're finished innovating and moving forward, someone will take your place tomorrow. Also, not one person here is going to stop ordering things on Amazon because they like it, so please sit down or vote better with your money
Amirul Zahari (25 days ago)
Soon gonna be broken maersk ,msc ,cmacgm, hapaglyod ,evergreen,oocl in shipping ocean industry... Welcome to new amazon container shipping company...50% more cheaper rates then all above... 1.000.000 teu ship as big as alien workshop ufoq
Blu Rox22 Js5 (27 days ago)
There's an Amazon 767 just sitting at hnl for weeks
PGT Beauregard (29 days ago)
Years ago, there was something called the 'anti-trust' laws which prohibited monopolies. Amazon has used its brilliant operations and stunning growth to overwhelm industries. There is absolutely nothing wrong with this, per se, but we have to remain vigilant to ensure fair competition...
Lai D (1 month ago)
I sometimes worried about Amazon's sheer size and reach
My Stock (1 month ago)
AMAZON will knock out FEDEX and UPS in couple years.. it's better to SHORT those 2 stocks... also, it will knock out USPS from goverment, too..it will hurt them but USPS can survive bc it's goverment
AB Ba (1 month ago)
USPS increasing their shipping prices..., while Amazon shipping is free. Perfect Recipe for Harakiri.
AB Ba (1 month ago)
USPS Will be like Amtrak Very Soon. Another defunct Government Subsidized entity.
AB Ba (1 month ago)
The Businesses are shifting from Bricks and Mortar stores to Online and Warehouse Platforms.
AB Ba (1 month ago)
I See Amazon Prime Jets Flying above Everyday... landing at International Airport nearby just 20 minutes drive time.
bam2xl14 (1 month ago)
45 lied again what a surprise.
Timothy Wilkes (1 month ago)
Maybe in the future Amazon may well survive the apocalypse and live out in a death stranding like situation. Who knows.
Aaron ward (1 month ago)
Everyone bashing on the fed ex executive needs to understand that he has to be positive. If he agrees that it’s hurting business, share holders will sell stocks etc. he HAS to be positive lol. It’s business. I doubt he agrees with 100% of what he’s saying.
phinadelphia Hlongwane (1 month ago)
FedEx and UPS should consider buying a large stake in Amazon and become a shipping department of Amazon therefore tame Amazon potential outgrowing them even though its a small number
Omega Man (1 month ago)
the fedx guy is correct in the current state of the industry. amazon is not breaking any new ground they are just trying to duplicate the capabilities of already established firms, Brown and fedx. Brown and fedx do more than just deliver packages, amazon has no idea what its going to cost to equal the scope and scale of Brown and fedx in the long run.
Omega Man (1 month ago)
Brown is still king of domestic delivery by far. Amazon will not surpass Brown as along as amazon employs ICs running around in flip-flops throwing packages on the front steps. And as for "free shipping" there is no such thing as free shipping. Only a sucker believes he/she is getting free shipping.
Pro Gadget Review PGR (1 month ago)
Maybe that's why they charge sometimes double the amount of money spent on goods. Under " shipping " , they're trying to expand their fleet !
Deplorable American (1 month ago)
FedEx senior VP is an idiot and our of touch from reality. FedEx delivery contractors are very unprofessional, rude and have no respect for their customers from my experience. They treat delivery packages as basket balls. Therefore, they need to be abolished.
T.J. Sonic (1 month ago)
Amazon is taking over all mail services in 2030
Amir O (1 month ago)
Long live Amazon ❤️❤️❤️
FJRGD (1 month ago)
Imagine having dinner with Bezos, Musk & Branson. We are not worthy!
Sōshi Miketsukami (1 month ago)
That fedex guy is making the same mistakes that walmart made.
Sōshi Miketsukami (1 month ago)
Trump: the us postal service is losing a lot of money taking care of amazon packages. Amazon: okay well make our own air service. Trump: laugh ya right. Amazon *does as intended* Trump: the us postal service has lost so much money now that Amazon doesnt use them anymore. 🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣🤣
AHR 12 (1 month ago)
The post office does get tax dollars u rat! Any short falls and all their pensions are paid by the US government u rat
zulfikangga (1 month ago)
Amazon try to monopoly...
Frank Ragetti (1 month ago)
Jesus Christ reincarnated Bezos.
Bittzen (1 month ago)
They're making it seem like a bad thing that Amazon is making the industry more competitive: bringing lower prices, consumer choice, jobs, and innovation. Why not let Amazon eliminate the middle man during their operations? No harm in that, many businesses do it. The question is: is amazon ever gonna be profitable? We'll see, and if the investors r wrong, then amazon's gotta shrink down and liquidate their assets or bring back the middleman
Joe Bie (1 month ago)
Not worried about the demise of UPS or FedEx at all. The dinosaurs died out a long time ago. Get over the demise of these worthless retailers.
Money mike Slick will (1 month ago)
Fed ex chairman is going to be left behind!! Watch and see
BBOY WORLD (1 month ago)
Fedex and ups will feel the pain , once amazon start offering cargo space to other logistic partys to make sure there planes are always full and efficient. Dont understimate amazon,
Saw Squad (1 month ago)
Id we use the Us Postal Service then the world would not go good. We'd get no mail.
Alejandro Garcia (1 month ago)
And soon to open san bernardino hub taking over the old airport in 2020
Bernie Sanders (1 month ago)
Okay hear me out. 777x cargo
RetroSteve (1 month ago)
Sooner or later, Amazon will take over USPS.
Sekina Martinez (1 month ago)
2 Billion dollars may seem like chump change to some people but it’s a hell of a lot of money to me.. And if my business can save 2 Billion by providing my own logistics, then shyyyttt I’m all for it.
MegaThepow (1 month ago)
Amazon is the cost of stores closing, now will see if UPS and FedEx will close down too eventually
DonCheto323 (1 month ago)
Nah just lazy ass people
Curtis Anthony (1 month ago)
I work for a last mile company who Amazon hired for delivery outta PHL. At least 150+ houses daily 180+ packages. 17.00 but no Amazon benefits
John-Paul Nagel (1 month ago)
It’s Out to Destroy Every Business! Sad 😞
The Waite (1 month ago)
How does CNBC pump out these videos so frequently, like jeez. These videos are so high quality.
Carlos Herrera (1 month ago)
Well it’s time for those Amazon employees to get unionized.
Sōshi Miketsukami (1 month ago)
They cant, immediate termination to follow if they so much as breath unions.
H20 Hilarious (1 month ago)
prime YES
Jose doroteo El grano de oro (1 month ago)
Él 80% de los artículos son hechos en China 🇨🇳 y no hechos en la usa 🇺🇸
Roberto Hernandez (1 month ago)
Fed ex n ups shouldnt worry because Amazon is only cutting out the middle man. Once they start logistics is down hill. Mark my words.
Pixel Tits (2 months ago)
Welcome, the the United States of Amazon.
ariccsr (2 months ago)
Amazons cost will go up substantially and their business shipping model will not be sustainable 10 years from now.
Afaese Tigilau (2 months ago)
FFoward to Dec 2019... Amazon air is behind 2 weeks lol
Jahiem Brown (2 months ago)
Post office losing cause they workers steal toomuch
Shahzad khan (2 months ago)
Jeff besoz you are the richest man in the world because you worked very hard
imad JD (2 months ago)
then ups and fedex and dhl should do the same as amazon .. means sell products rather than only transporting amazon's goods
SuperPlayz (1 month ago)
Too expensive
realistindenial (2 months ago)
Amazon basically wants to be good at everything and so far they are largely succeeding.
DAT•CULTURE (2 months ago)
Let's asked "BEST BUY" co would know how Amazon was so amazingly friendly to even keep them on track. And Amazon would be a good one for FedEx competition. Give it a ten year range. Amazon Seattle is going to bankrupt ya' company with no doubt. Within' the half mark five year term would probably say 3 half year range would show the big jump and percentage. but still , FedEx been in the game for decades. sometime u just can't be so comfortable about the small company's (was once small, "Amazon") that took the world by surprised. Lower your price FedEx in order to keep you customers..
Mit Gon (2 months ago)
Amazon only shipping they own staff. Now if they ship other things like post office then will crash the competition belong recovering
Duane (2 months ago)
Remember when Microsoft said they didn’t see Apple when they dropped the iPhone and changed the game.... peep fams hate at 6:10. We’ll check again with this statement in about a year.
Majin VEGETA (2 months ago)
Time to invest in Amazon air.
Da Ro (2 months ago)
Trump is a crook & if his mouth is moving you bet most of what he says is a lie
Da Ro (2 months ago)
I've had same day & you can't beat that
Da Ro (2 months ago)
I like UPS but Prime is better & there service is supper 😊☺☺☺☺☺☺
Dawn Hodges (2 months ago)
So is Amazon going into delivering standard mail? People/businesses use Fedex to deliver time sensitive letters/packages. I don't get how they could impact FedEx's business. Fedex never delivered my Amazon packages anyway. I think i saw the ups man once. Jeff Bezos is a beast. maybe they can put the post office out of business if they could get access to our boxes. hmmm.
jaxsun72 (2 months ago)
Amazon is a POS inhumane employer. Mandatory 60 hour weeks during the holidays.
55555 (2 months ago)
Lol this reminds me of blockbuster and Netflix lol
Daniel Morales (2 months ago)
Amazon is a giant octopus that takes everything. Maybe in the future USA will change it's name, it's going to call, amazon country!
Sven Frontin-Rollet (2 months ago)
any market Amazon takes on, they will want to rule in a decade
Sven Frontin-Rollet (2 months ago)
don't let you think someone who is small won't overtake your market especially with a proven ability to disrupt markets
Sven Frontin-Rollet (2 months ago)
lets not forget what Amazdon did to shopping centres...
Barrot Jeantoy (2 months ago)
Amazon SUCKS. 50 light bulb for car, improperly made knockoff, causes $2500 in damage to the car. Amazon Customer Service: laughs in my face and says “we might be able to refund you the 50.... Ill check”
Username369 (2 months ago)
I honestly think one day amazon will beat FedEx and UPS in their own game. Because they’re unstoppable.
Ammar Abbasi (2 months ago)
Why didn't they mention Amazon Flex?
August XIII (2 months ago)
Cuz yhey arenCLEAN.
alex 2020 (3 months ago)
Well I just got a job at UPS 25/30% seems like a major chunk
Sunny Wu (3 months ago)
I hear to get priority landing clearances and fast turnaround time all PrimeAir planes will SQUAWK 7700.
WaroftanksPro (3 months ago)
"very below cost"
Polaris Ice (3 months ago)
It’s Fort Worth not Forth Worth
Jeff Cloud (3 months ago)
Those sidewalk robots will never work here in the USA. Bunch of thieves and criminals reside here. I see those robots working in countries like Japan and South Korea where stealing and vandalism rarely happens.
Be.you.tifully Made (3 months ago)
Amazon is going to put literally everybody out of business. I better try to get a job there when I graduate.
Chris P. Bacon (3 months ago)
Fed-Ex ....exec thinks Amazon isn't a shipping threat? He's an idiot. Bye bye Fed-Ex idiot.