Frederick Smith FedEx CEO – “we look at Amazon as a wonderful company”
EventHorizon1984
20 December 2018
“Those who don’t know history are destined to repeat it.”
Edmund Burke (1729-1797)
The knowledgeable people at FedEx had this interesting exchange, at their November FedEx Corp Earnings Call.
“Have you seen any impact from Amazon Air?”
Ken Hoexter of Merrill Lynch
“Again, the short answer to that question is no.”
Rajesh Subramaniam, FedEx Executive Vice President, Chief Marketing and Communications Officer
“From me a short and long-term perspective, what is FedEx’s strategy to counter competition from Amazon?
David Campbell of Thompson Davis
“I’m not really sure how to answer this question. I mean, we look at Amazon as a wonderful company and service and they’re a good customer of ours. We don’t see them as a peer competitor at this point in time. For many reasons, we think it is doubtful that will be the case. … I think the prospects of this company is going to be well disrupted, which just occurs over and over again to quote a previous statement is fantastical. So, I’ll leave it at that.”
Frederick Smith, FedEx Chairman and Chief Executive Officer
“What does FedEx have regarding the recent expansion of Amazon Air at Northern Kentucky, Rockford International and Alliance Airports?”
Dan Ronan of Transport Topics
“Well, Dan, as we’ve talked about before, we don’t have any concerns. And so far, as you can see, our volumes in the domestic networks are continuing to increase and we value Amazon as a good customer of ours. Thank you.”
Rajesh Subramaniam, FedEx Executive Vice President, Chief Marketing and Communications Officer
“I think it’s also important to recognize and, again, there is a significant misunderstanding, the Amazon Air network is set up to move inventory within the Amazon system, which is prodigious, it’s big. It moves not-in-stock and low turn SKUs and forward stocked items for their third-party customers, who can’t duplicate inventory. So it’s scheduled differently”
Frederick Smith, FedEx Chairman and Chief Executive Officer
Have we heard those words, “We don’t see them as a peer competitor at this point in time. For many reasons, we think it is doubtful that will be the case,” before?
“Those who cannot remember the past are condemned to repeat it.”
George Santayana (1863-1952)
Anyone remember eBay INC? Let’s go back nineteen years, to 1999.
“Amazon’s a very competitive company, and I think they are a very good competitor, and we take them very, very seriously. I think the proof will be in the pudding. You know, we are still looking for signs of momentum, and so far, they have not gotten traction.”
Margaret “Meg” Whitman, 30 May 1999
That was a fascinating bit of hubris, given the mood of the stock market.
eBay INC stock split 3 for 1 on 2 March 1999.
Maybe not the complete ‘mood’ of Wall Street.
“Meg Whitman, CEO of pioneering online auctioneer eBay Inc. (EBAY), remains the czarina of Net auctions–and that’s saying a lot. Three tough competitors, Amazon.com (AMZN), Yahoo! (YHOO), and Lycos (LCOS) tried to knock eBay from its perch. It didn’t happen.”
Jim Kerstetter, Businessweek, 15 May 2000
Well. There are mood swings. And then there’s mood whiplash.
This is the state of e-commerce, 2018.
- 48.0% – Amazon
- 7.2% – eBay
- 4.0% – Walmart
- 3.9% – Apple
This is U.S. retail, 2017. Amounts in billions.
- $374.80 – Walmart
- $115.89 – The Kroger Co.
- $102.96 – Amazon
- $93.08 – Costco
After over two decades, eBay INC is not much of a retailer.
This is the Bear Market of today.
- $1,458.37 – Amazon
- $28.02 ($1,597.81) – eBay
eBay INC stock has split five times.
- 1999 – 3 for 1 split
- 2000 – 2 for 1 split
- 2003 – 2 for 1 split
- 2005 – 2 for 1 split
- 2015 – 2376 for 1000 split
Leaving $1,597.81 as the ‘not split’ equivalent.
At least eBay’s share price, on paper, caught up to Amazon’s. Which may be small consolation to the corporation. As Walmart and Apple seek to claim the crown of ‘we’re number 2’ from eBay.
Meanwhile, will the juggernaut FedEx steamroll Amazon?
Couriers and local delivery service providers’ global market share in 2017
- 38% – DHL
- 24% – FedEx
- 22% – UPS
United States market share 2018
- 35.85% – UPS
- 35.6% – USPS
- 16.93% – FedEx
- 10.87% – DHL
Let us know in eighteen years.
/*
“I’ve got news for Mr. Santayana: we’re doomed to repeat the past no matter what. That’s what it is to be alive.”
Kurt Vonnegut (1922-2007)
//
Event Horizon Log 
Frederick Smith FedEx CEO – “we look at Amazon as a wonderful company”
Published 20 December 2018 Amazon , Business , Commentary , eBay , History Leave a CommentTags: Amazon, Dan Ronan, David Campbell, DHL, eBay, Edmund Burke, FedEx, Frederick Smith, George Santayana, Jim Kerstetter, Ken Hoexter, Kurt Vonnegut, Margaret Whitman, Meg Whitman, Rajesh Subramaniam, UPS, USPS
Frederick Smith FedEx CEO – “we look at Amazon as a wonderful company”
EventHorizon1984
20 December 2018
“Those who don’t know history are destined to repeat it.”
Edmund Burke (1729-1797)
The knowledgeable people at FedEx had this interesting exchange, at their November FedEx Corp Earnings Call.
Motley Fool Transcribers, 18 December 2018
“Have you seen any impact from Amazon Air?”
Ken Hoexter of Merrill Lynch
“Again, the short answer to that question is no.”
Rajesh Subramaniam, FedEx Executive Vice President, Chief Marketing and Communications Officer
“From me a short and long-term perspective, what is FedEx’s strategy to counter competition from Amazon?
David Campbell of Thompson Davis
“I’m not really sure how to answer this question. I mean, we look at Amazon as a wonderful company and service and they’re a good customer of ours. We don’t see them as a peer competitor at this point in time. For many reasons, we think it is doubtful that will be the case. … I think the prospects of this company is going to be well disrupted, which just occurs over and over again to quote a previous statement is fantastical. So, I’ll leave it at that.”
Frederick Smith, FedEx Chairman and Chief Executive Officer
“What does FedEx have regarding the recent expansion of Amazon Air at Northern Kentucky, Rockford International and Alliance Airports?”
Dan Ronan of Transport Topics
“Well, Dan, as we’ve talked about before, we don’t have any concerns. And so far, as you can see, our volumes in the domestic networks are continuing to increase and we value Amazon as a good customer of ours. Thank you.”
Rajesh Subramaniam, FedEx Executive Vice President, Chief Marketing and Communications Officer
“I think it’s also important to recognize and, again, there is a significant misunderstanding, the Amazon Air network is set up to move inventory within the Amazon system, which is prodigious, it’s big. It moves not-in-stock and low turn SKUs and forward stocked items for their third-party customers, who can’t duplicate inventory. So it’s scheduled differently”
Frederick Smith, FedEx Chairman and Chief Executive Officer
Have we heard those words, “We don’t see them as a peer competitor at this point in time. For many reasons, we think it is doubtful that will be the case,” before?
“Those who cannot remember the past are condemned to repeat it.”
George Santayana (1863-1952)
Anyone remember eBay INC? Let’s go back nineteen years, to 1999.
“Amazon’s a very competitive company, and I think they are a very good competitor, and we take them very, very seriously. I think the proof will be in the pudding. You know, we are still looking for signs of momentum, and so far, they have not gotten traction.”
Margaret “Meg” Whitman, 30 May 1999
That was a fascinating bit of hubris, given the mood of the stock market.
eBay INC stock split 3 for 1 on 2 March 1999.
Maybe not the complete ‘mood’ of Wall Street.
“Meg Whitman, CEO of pioneering online auctioneer eBay Inc. (EBAY), remains the czarina of Net auctions–and that’s saying a lot. Three tough competitors, Amazon.com (AMZN), Yahoo! (YHOO), and Lycos (LCOS) tried to knock eBay from its perch. It didn’t happen.”
Jim Kerstetter, Businessweek, 15 May 2000
Well. There are mood swings. And then there’s mood whiplash.
This is the state of e-commerce, 2018.
This is U.S. retail, 2017. Amounts in billions.
After over two decades, eBay INC is not much of a retailer.
This is the Bear Market of today.
eBay INC stock has split five times.
Leaving $1,597.81 as the ‘not split’ equivalent.
At least eBay’s share price, on paper, caught up to Amazon’s. Which may be small consolation to the corporation. As Walmart and Apple seek to claim the crown of ‘we’re number 2’ from eBay.
Meanwhile, will the juggernaut FedEx steamroll Amazon?
Couriers and local delivery service providers’ global market share in 2017
United States market share 2018
Let us know in eighteen years.
/*
“I’ve got news for Mr. Santayana: we’re doomed to repeat the past no matter what. That’s what it is to be alive.”
Kurt Vonnegut (1922-2007)
//