[Chat Log] April-May 2019

[Chase]

It could either be devastating for FedEx, or they have something else going for them... and hopefully it's nothing in the tune of a Chinese Investment.

 

[Chase]

Has your mulling produced anything?

 

[Eugene]

If there is a Chinese cash infusion, they've kept it real quiet.

 

[Eugene]

I think it's a bit of a gamble. FedEx is tacitly acknowledging Amazon as an upcoming threat in the logistics segment. If FedEx plays it right, they're an appealing way for companies to compete with Amazon. If they called it wrong, they handed the US market, at least short term, to UPS on a silver platter.

 

[Eugene]

And there's a smell around Express of vertically integrating Express and Ground. Nothing concrete, just whispers.

 

[Eugene]

But I've always thought having one company functionally act as two is a mistake, so that may be my bias speaking.

 

[Victorique]

Amazon has its hands in too many pies. If FedEx breaks off, they can still make money elsewhere (ie: shipping buttloads ofonline merch from retailers other than Amazon/shipping across the country or overseas, or sponsoring sci-fi shows). If Amazon makes everything Amazon brand and something happens to Amazon, [insert atomic bomb gif and crash sound]

 

[Victorique]

If they play it right, Amazon could have an individual and separate shipping service that would prob make quite a bit. But knowing them, na.

 

[Deric Storm]

I think there's gonna be something that happens to Amazon in the next 2-3 years.

 

[Victorique]

Yep. Theres so much I could list off that could happen

 

[Deric Storm]

I can't put my finger on it but I think the Bezos divorce is the first domino to fall

 

[Eugene]

I suspect once Amazon fully immerses itself into the logistics business it's going to find margins exceptionally slim when it wants to maintain it's free shipping prime promise.