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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 (3255)
CNBC (3 months ago)
Which industry do you think Amazon will disrupt next?
Drewski intergalactic (4 days ago)
The shoe market
Rworlds1 (4 days ago)
Postal service
Kevin Wilson (4 days ago)
Gaming industry. With their purchase of Twitch and Curse I wouldn’t be surprised if they were planning on creating a console
Jimmy Garza (5 days ago)
ELOTE- MEN (6 days ago)
M. H. (13 hours ago)
amazon is the standard oil of the 21st century. where are the antitrust laws?
Charlie Tompkins (14 hours ago)
Why would Amazon even attempt to compete with the USPS? USPS operates daily in every single city in every single state. USPS would crush them in a heartbeat if competitive bidding was allowed by congress.
joosunkmybattleship (1 day ago)
Amazon is monopolizing Capitalism
Tommy Rommazontz (1 day ago)
Fedex Express chose not to renew Amazons contract as of July 2019. It was 1.3% of Fedex's revenue but 8% of their volume. Sounds like a good business move. Not profitable. Looks like Amazon will have to sell their undesirable shipments to someone else. The post office is already getting screwed enough, so it looks like they'll have to dupe UPS or build their own network. Oh!!! They are building their own network. I wonder why???
SDBOSOXFAN (1 day ago)
Psychology of the citizen: laziness means lethargy means clicks means someone else does the work - Go USA!!
frawldog (1 day ago)
He has an interesting way of thinking
frawldog (1 day ago)
Sad for ups. I work for them
1CBRDUDE (2 days ago)
Amozon should also consider the cost of having the trucks,planes, and whatever else they transport because it's really costly in the long term .
Kwan Lek (2 days ago)
Post Office is becoming irrelevant, poor management and greedy unions
Dude it's Kendall (2 days ago)
Who thinks that amazon should make a shipping company with UPS?
oldtwins na (2 days ago)
UPS is a union shop and so very much incompatible with Amazon's business methods.
L.L S. (2 days ago)
Ups and FedEx will be just fine as long as Walmart does not have its airline. 🤗
prilep5 (3 days ago)
Amazon will merge with DHL and will be come global distributor #1
LostSoul (3 days ago)
A.S. Neuman (3 days ago)
FedEx and UPS are being remarkably short sighted if they’re not worried about Amazon delivery services. Amazon is not a company that enters the market just to invade it, they enter a market to dominate it.
B D (3 days ago)
Lol amazon is a beast
Opulent sneakers (3 days ago)
FoOoXoOoY (4 days ago)
Can you make a video on how China delivers in 1 day?
Burbujasmusic (4 days ago)
Tobias Thompsen (4 days ago)
Too big of a company too keep growing, union will be soon to follow, which is what they have been avoiding for a long time.
ShreqBoi (5 days ago)
I have delivered at ont5, which is in San Bernardino, the Ontario airport and March airfield and at various FedEx hubs. Although Amazon is doing good. They are underpaying their contacted shippers and now the fleets aren't caring as much about quality. Amazon really doesn't pay much compared to FedEx. I'm now a fleet manager with two sister companies, one is contacted with Amazon and the other with FedEx. I spend most of my time with FedEx because that's our bread winner....
Ken Rhinehart (5 days ago)
Amazon is building their own terminal at Ontario Airport.
Jessica L (5 days ago)
Fed Ex and Ups is going down. Amazon now offers Amazon Flex to employees. They deliver packages like Uber style choose your time and schedule.
Citizen Gar (5 days ago)
6:05 Does anyone remember Martin Short's "Nervous Lawyer" character from SNL? Google it if you don't know what I'm referring to.
ItsMaha (5 days ago)
Amazon is taken over and I’m okay with it
Chris Bellevue (5 days ago)
I could see right through that FedEx Executive's poker face 😅
Ryan Darko (5 days ago)
Wait till google kills the doctor
Ryan Darko (5 days ago)
Of course they will than the post office will have the final fight for air
Peter Zhang (5 days ago)
These videos are amazing and really informative. Keep it up CNBC!
Dexter James (5 days ago)
Amazon is thinking about efficiency and saving money.
Tim B (6 days ago)
That FedEx guy is gonna wake up one day and realize he should have taken Amazon seriously
Reagan Jeffries (6 days ago)
The Post Office is losing BILLIONS because 1. its main demo is dying off, and they're not actively trying to replace it, and 2. Their service is TERRIBLE!!!
Reagan Jeffries (6 days ago)
Patrick probably won't be employed with his current company much longer
alan 777 (6 days ago)
People is going be so screwed they don't even know it!!🤭 I reading all these comments alot of jobs going to be lost bet on that!!!👏👏 I hope everyone get ready for the great meltdown!
M M (6 days ago)
I’ve never bought anything from amazon.
do duc duy (6 days ago)
As much as I love Amazon for their service, a monopoly WILL hurt in the long run
LAD Teknologies (6 days ago)
I could view in the near future that Amazon might become strong enough to purchase both of them if they end up dipping down too low, Amazon is all about the fire sales, we will see what happens!
naeem mussa (6 days ago)
"We are not worried" you best be worried you will be stuffed in a couple of years LOL
Alain Portant (6 days ago)
6:07 That won't age well.
Mitch Richard (6 days ago)
I've never used Amazon in my life. Their site is horrible. And I'll never use it.
Davy Roger (6 days ago)
Jeff Bezos is all powerful
Baba Yaga (7 days ago)
With all that profit ,maybe the owner can grow some more hair on his head, thatl scare the competition the most
f1y7rap (7 days ago)
I have had FAR more problems with Amazon package deliveries than I have had with FedEx/UPS. Amazon drivers are (at least in my area) bottom tier. They are paid the least and as such work to grind through as many packages as they can, and to do so are typically tossing packages from a distance, like its a shot-put competition
Frank Smith (7 days ago)
I hate a lot about Amazon, and I agree with Elizabeth Warren that they (and another monopolies such as Facebook and Google) are going to need to be broken up soon, but damn, I gotta say: here I sit in a rare northern California heat wave; I decided at around 2 pm yesterday that I needed a fan...and the Amazon delivery person just handed it off to me today at noon, less than 24 hours later. Sigh.
dennisestrada75 (7 days ago)
What ever happen to Trust busting? Just shows how much corporations own the USA Government
꧁ ҉꧂ (7 days ago)
Ups sucks they should suffer tbh, FedEx is cool n reliable in my area
PolinGuira (7 days ago)
Poshhe.A (7 days ago)
suffolk6311 (7 days ago)
expecting layoffs from those companies
Mr. T (8 days ago)
Shipping it already included you just don't see it. !
Jacob Throwaway (8 days ago)
Amazon delivers on sunday im all for it
Moé Ramirez (8 days ago)
Trump is NOT going to hurt Amazon, when he says this... He's hurting the American people, because if Amazon paid more for the services the consumer will end up paying more too.
nick payne (8 days ago)
Funny how when you try and make things better and cheaper you get people saying you’re stealing from other company’s. I say ups and FedEx is stealing from us And delivering packages late af
Christopher Ovrebo (9 days ago)
"reckon" any time I hear that I just think of an old toothless gold prospector
Brandon McLean (9 days ago)
Amazon is the biggest monopoly. Their shipping sucks ever since they tried to do their own shipping services. Never shows up on time and there’s always issues.
Narasingarao K (9 days ago)
Informative clip
Tony Hong Fishing (10 days ago)
FedEx sounds like blockbuster video “.... we’re not worried about Netflix”. Lol
D Taylor (10 days ago)
That FedEx VP reminds me of Steve Balmer dismissing the original iPhone as a threat to Nokia-- "oh Nokia sells this much, we have this and this". No, the iPhone was a revolution and cutting out 3rd parties is a revolution too.
mark anderson (10 days ago)
so youre saying Trump is either stupid or flat out lying or both?????I'm shocked!!
mark anderson (10 days ago)
FedEx may not be worried now....but wait a couple of years
kyunghee Oh (10 days ago)
So wonderful! Thank you so much Jesus today again specially! For Supportings and Connectings endlessly! Thank you so much for sharing! So anice! God bless all! God bless AMERICA!
Expert Critic (11 days ago)
Amazon having much success but ups drivers are still the highest paid in the industry. Jeff Bezos would never pay 37 bucks a hour, free benefits, and a pension for employees.
Amon Shegog (11 days ago)
What if Walmart became a cargo hub?
Wasay M (11 days ago)
Trump talks as if USPS has given discounts to Amazon while the govt was drunk or asleep ? Come on man stop talking like a kid who always blames others for his failures. And now because of Trump's comments which hurt Amazon's public image, will only negatively impact USPS as Amazon would speed up its process to get rid of USPS as much as possible. Thanks TRUMP, Make in America by American Robots again.
Karl Letcher (11 days ago)
Thank God the FTC and DOJ are so diligent about enforcing antitrust regulations. Otherwise, Amazon could become a monopoly.
Michael Red Sox (12 days ago)
Amazon makes everything cheaper and faster. We should have them run the Department of Defense.
Kevin Puray (6 days ago)
Their servers are actually being used by the DOD
German (12 days ago)
I prefer Amazon, UPS and FedEx delivering my packages than USPS, cus the USPS carries always seem to have issues, they don’t deliver on time or they wont deliver for any little reason. I had issues with USPS that they wanted to cancel my mail, the carrier was making stuff up that I had installed cameras and got caught in lies. So good job Amazon! I love shopping on Amazon by the way, Prime is worth every penny.
Rolando P. (12 days ago)
Fedex always lose my packages.
tyrone sanford (12 days ago)
Wait until they have to deal with the unions.
1stZombie ToTurn (12 days ago)
@4:25 his job looks like it sucks 😬
Andy Jordan Male (12 days ago)
Great video.Jesus bless. Only the blood of Jesus & his work at cross saves. Please read the Gospel 1Corint 15:1-4,Rom 3:25, 10:9-10 & Ephes 2:8-9.Amen
RealBlessed (12 days ago)
Bezos is the smartest mfer out right now, he killin it....brilliant. Cut out the 3rd parties, increase revenue so you can create free 1day shipping for your customers that pay for prime. Brilliant.
Mitchell Neal (12 days ago)
This is an Experiment: If you’re reading this, subscribe and turn on notifications for an exclusive video. P.S. you won’t regret it.
Krish Na (12 days ago)
Already Amazon is not paying taxes
Krish Na (12 days ago)
Break Amazon into pieces using Monopoly Act just like the Standard Oil
Krish Na (11 days ago)
@jonnyram32 Currently they may not be a monopoly but when competition dies out they will be a monopoly . And fyi I do know the meaning and definition of monopoly . I m educated enough
jonnyram32 (12 days ago)
@Krish Na that's the thing they are not a monopoly why do people keep saying that. Ups fed x and mail is still there so no where close to a monopoly. Might wanna research what a monopoly is don't think you understand what they are.
Krish Na (12 days ago)
@jonnyram32 Monopoly is never good for any industry or a country . And fyi I live in India
jonnyram32 (12 days ago)
sound like a walmart or bestbuy worker sorry these 2 companys will die just like bestbuy and you see amazon takes them over.Don't worry you can get a job at amazon and get paid more then walmart gives you.
D. A. (13 days ago)
Overworked pilots is not going to work like overworked Warehouse workers.
likaboss7654 (11 days ago)
D. A. The pilots barely do anything anymore because of the new tech they put in the planes
Za Z (13 days ago)
Drones and robots wont work to deliver will they? Wont gangsters just steal the whole item and robot?
Van Niyo (8 days ago)
I would steal their stuff. Are you calling me a ganster? I'm slightly offended.
Joshua Syrtash (13 days ago)
This all started selling books from his home!!
Sony Brand (13 days ago)
If you drive your own car to work and deliver for Amazon you are beyond stupid.
Steve Zissou (13 days ago)
im fairly certain a box dropped off by a drone for a higher price will be better than a dude drop kicking a fragile box onto your door step by the ups and fedex soccer teams.
Zenobia Beckley (13 days ago)
Thinking about moving or investing in Orlando, Florida!!! Please let us help you find your dream home 🏡 Thank you
LOL You (13 days ago)
I hope they all go bankrupt I don’t care about any corporation because they don’t care about me only my money.
Craig Jensen (14 days ago)
It's real simple, I don't consumer shop, you comsumers spend your money at Amazon. The dumbest animal is a consumer. Buy from somewhere else.
Batmann29 (14 days ago)
Amazon changed the way I shop. Ordered $100 worth of items yesterday afternoon. Arrived at my doorstep this morning free of charge. Life is good
RobosergTV (3 days ago)
@Chadstravels which is? Goods are cheap, no hidden cost.
Chadstravels (5 days ago)
There is a hidden cost however
Ian (14 days ago)
My prime membership started at $99. Year for the first few years then it went to $109. Then $119. Then $129. If they raise it again I will cancel
Ainsley Harriott (14 days ago)
Amazon Air seems like a great service but it seems the tax payer does really foot the bill for the more rural, hard to reach areas. It means that less wealthy areas are not going to be kept up with the infrastructure.
ettekamba6969 (15 days ago)
Soon AmAzon will have their own Airline's call Amazon prime Airways.APA and it shall be competing with A A .Detal and the rest.
interpretation 21 (15 days ago)
Just saw the commercial for KFC for quebec. Pretty interesting ...not a real French person in it. All middle Eastern ... Sad to see. How it is that foreign people can be so deranged as to try to pretend another ethnic people's culture! I'm also getting tired of the bogus mentality ... Notice no real charisma or positive values ? Might be a tester to see how stupid and INDISCRIMINANT people are becoming . So INDISCRIMINANT that they commit their own ethnic genocide . Would not be surprised KFC takes ordered from satanic bilderberg. There lucky this was not in my country...under very strict ethnic respect and cultural protect policies ...you would not find 1 single sub Saharan or community flakey white or middle Eastern person in it. Infact there would be no people at all... Because if your selling a product ..your selling a product...so you only show the chicken ...;)
YU HE (15 days ago)
FedEx is spying on China.
YU HE (15 days ago)
FedEx, theft.
Darian Murcott-Istead (17 days ago)
FedEx seem overly confident Amazon is not a player even though they've amassed such a large logistical infrastructure in a very short period. This loss they look at as a single entity has pontential for many other enterprises especially seeing they are looking to expand their logistics drastically. Themselves being their largest clientele with quick and efficient door to door services mean they're not beholden to anyone leaving room for brockers to full excess cargo space as an extra means of revenue not a main source, unlike it's competition. Aswell as sellers of other platforms using them as preference because of quicker, more efficient deliveries and lesser handling costs.
eksine (17 days ago)
trump's tweets are just insane
eksine (17 days ago)
omg Amazon = Skynet
49ers1975 (17 days ago)
yeah, keep everything in house , save money make money...pas s the saving to us...
Tina Einstein (17 days ago)
Standard oil has been reborn. It's name is Amazon.
Sin City Quinn (17 days ago)
Without Amazon the Post Office would be obsolete.
Craig Jensen (14 days ago)
Buy Bitcoins (18 days ago)
Amazon+CIA.. stealing your data one sucker at a time
ardopork kropodra (18 days ago)
the personal creeps amazon uses now should be shot.
Pierre Klee (19 days ago)
The USPS is $70 Billion in the hole and they have zero interest in correcting that. We tax payers are bailing them out and that should stop today. They will go out of business in a few years and rightfully should so.
Ryan Watterson (21 days ago)
thats a good idea go monoply man i got trump grammar i am busy man