In this file:
· FedEx Express Drops Amazon, Focuses On 'Broader E-Commerce Market'
· Amazon's Vendor Purge and FedEx Cancellation Prove 1 Thing: Startups Need to Watch Out
· FedEx drops Amazon U.S. delivery contract. Here’s why you shouldn’t care
· Amazon Will Expand Its Cashless Stores
· Amazon Tests Scout Delivery Robot
· Amazon opening delivery station in Omaha
· Media Release: Statement Regarding FedEx Corporation’s Relationship with Amazon.com, Inc.
· FedEx picks sides in Walmart's battle with Amazon
FedEx Express Drops Amazon, Focuses On 'Broader E-Commerce Market'
Tanzeel Akhtar , Benzinga
June 07, 2019
FedEx Corporation said Friday that it will not renew Amazon.com, Inc.'s domestic express contract.
"FedEx has made the strategic decision to not renew the FedEx Express U.S. domestic contract with Amazon.com, Inc. as we focus on serving the broader e-commerce market," the courier service said in a statement.
The decision does not impact existing contracts between Amazon and other FedEx business units, nor international services, FedEx said.
Amazon is not FedEx’s largest customer, and the percentage of total FedEx revenue attributable to Amazon accounted for less than 1.3 percent of total FedEx revenue for the 12-month period ended Dec. 31, the company said...
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FedEx drops Amazon U.S. delivery contract. Here’s why you shouldn’t care
Bruce Brown, Digital Trends
FedEx decided to bail on renewing its contract with Amazon for U.S. domestic express deliveries. There’s no change in the agreements between the two companies for international services, but FedEx chose to walk away from nearly $850 million in annual revenue.
Whether or not giving up close to a billion dollars of business is right for FedEx, what difference does the delivery company’s “strategic decision” mean for your Amazon Prime orders?
Here’s why U.S. consumers won’t suffer — or likely notice — when black-and-purple-shirt-wearing FedEx drivers no longer leave Amazon Prime boxes on doorsteps: UPS, USPS, and Amazon itself.
UPS already delivers a considerable percentage of Amazon’s Prime two-day and one-day orders. The United States Postal Service also delivers a growing share of Amazon’s brown boxes and packages. None of the involved parties, meaning FedEx, UPS, the USPS, and Amazon disclose specific delivery numbers, which makes citing precise counts or percentages impossible.
In the press release about the contract change, FedEx stated, “As previously disclosed, Amazon.com is not FedEx’s largest customer. The percentage of total FedEx revenue attributable to Amazon.com represented less than 1.3% of total FedEx revenue for the 12-month period ended December 31, 2018.”
In its 2018 Annual Report, UPS stated, without mentioning specific customer accounts, “No single customer accounts for 10% or more of our consolidated revenue.” As FedEx avoids Amazon loading docks in the U.S., UPS is bound to pick up the most substantial portion of those shipments.
Earlier this year in May, Amazon broke ground on a 3-million-square-foot cargo facility at Cincinnati/Northern Kentucky International Airport. When the $1.5 billion shipment hub begins operation in 2021, it will serve up to 100 Prime Air cargo planes.
Also, in May, Amazon...
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Amazon's Vendor Purge and FedEx Cancellation Prove 1 Thing: Startups Need to Watch Out
The e-commerce giant has long touted itself as a friend to small businesses. That could soon change.
By Cameron Albert-Deitch, Assistant editor, Inc.com
Jun 10, 2019
Almost two million small businesses use Amazon to sell their wares. And right now, a good chunk of them probably have a lot of questions.
On Friday, FedEx announced a "strategic decision" to stop providing express delivery for Amazon packages in the U.S. On the same day, the chairwoman of the U.S. House Committee on Small Business, Nydia Velazquez (D-N.Y.) wrote to Jeff Bezos about last month's Bloomberg report that Amazon is set to purge thousands of mom-and-pop vendors from the company's wholesale network.
"As Chairwoman of the House Small Business Committee, I find these reports deeply troubling as this change could jeopardize small wholesale businesses from continuing to do business with Amazon and affect millions in sales and hundreds of thousands of jobs," Velazquez wrote, asking for clarity and timelines for Amazon's small business plans.
The news brings some familiar questions into the spotlight: Is Amazon a collaborator or a competitor for startups? Friend or foe? Both? Neither?
Amazon has long touted its positive relationships with small businesses, which has become a reliable defense whenever the company comes under attack for high-profile issues like counterfeit products or poor factory working conditions. At the same time, Amazon has also steadily expanded into industry after industry--recent examples include grocery stores, high-end apparel, food delivery, and even health care--instantly becoming the biggest fish in any new pond.
The FedEx news is yet another instance: Amazon has been building out its own shipping and delivery network. Not that FedEx is threatened, of course: Amazon accounted for less than 1.3 percent of FedEx's total 2018 revenue. The last time Amazon's in-house delivery network made headlines was in September, when a Business Insider report revealed the abusive conditions under which many drivers worked.
Meanwhile, the vendor purge is a new kind of threat--though Amazon has vigorously denied that such a move is happening. Last month, Bloomberg called it "one of the biggest shifts in Amazon's e-commerce strategy since it opened the site to independent sellers almost 20 years ago."
From Amazon's point of view...
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Amazon Will Expand Its Cashless Stores
Walter Loeb, Contributor, Forbes
Jun 10, 2019
Suddenly there will be more cashless stores by Amazon. Real estate expert, and founder of Thor Equities, Joe Sitt predicts that Amazon could expand to 1,000 locations in the next 10 years. Customers like to shop, but they do not like to wait.
According to Dilip Kumar, Amazon VP, the Amazon Go retail stores are designed to eliminate that waiting time. Customers simply select their goods, place them in a bag, and go home. For them, there are no lines and no check outs. There are 12 stores in major cities across the United States at this time.
At the new MARS conference on robotics, automation, and space today (which was sponsored by Amazon), Kumar laid out three problems which had to be solved to make this concept work. They turned out to be complex problems which were solved by sensors and AI-powered technology.
The first problem was to figure out which Amazon customer should be charged. After all, it’s important that the computer generate accurate receipts. According to Kumar, it was hard to ensure this accuracy due to the random movement of the customer. Since the sensors also tracked stragglers who might have come along, this was very difficult.
The second problem arose from the need to work out precisely what the shoppers were taking from the shelves and charging them properly. Sometimes products look very similar on the shelves, such as different brands of peanut butter, which may be placed side by side on a shelf so it’s hard to notice what item is actually picked up. Sometimes soft packaged goods may have obscured labels because of strong blinding lights. Another problem may be a hand hiding a label or a fast-moving grab motion blurring the footage.
To solve the problems...
Amazon Tests Scout Delivery Robot
June 10, 2019
Amazon has created detailed virtual maps to train the company’s new Scout delivery robot.
Scout VP Sean Scott told The Verge that the eCommerce giant has collected 3D data, real-life textures, and even modeled the sidewalk down to the storm drains in order to create the maps and boost the development of the robot.
“We can run thousands of deliveries in simulation overnight versus taking a bot outside in the real world,” Scott says. “The bot doesn’t actually know it’s in a simulation. It thinks it’s in the real world, which is pretty cool.”
Scott added that the company’s other training apparatus includes an indoor robot park, as well as special rigs to test the resilience of the robot’s wheels.
In January, Amazon unveiled Scout, a robot on six wheels about the size of a small cooler that will deliver packages right to consumers’ doors. The company said it will start with six Scouts working Monday through Friday, in the daylight. The robots will follow their routes autonomously, but at least for a while they’ll be accompanied by an Amazon employee.
“We developed Amazon Scout at our research and development lab in Seattle, ensuring the devices can safely and efficiently navigate around pets, pedestrians and anything else in their path,” the company said.
In fact, Scott says a major part of Scout’s development is making sure the robots are a natural part of the environment. In addition...
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Amazon opening delivery station in Omaha
By: Erik Mauro, KMTV Omaha
Jun 10, 2019
OMAHA, Neb. (KMTV) — Amazon is opening a delivery station in Omaha, the first Amazon facility in the state.
The Grand Opening is set for today at 1:30 p.m. Governor Pete Ricketts and community members will be on hand for the opening near 156th and Schram Road. This station has created 230 permanent, full-time and part-time jobs and powers job opportunities for hundreds of small businesses and independent contractors in the area.
During today's event, Amazon will also donate $10K worth of items to Lift Up Sarpy County, who are assisting local families with relief following the floods.
Nebraska has been in consideration for Amazon for awhile now...
Statement Regarding FedEx Corporation’s Relationship with Amazon.com, Inc.
June 7, 2019
FedEx has made the strategic decision to not renew the FedEx Express U.S. domestic contract with Amazon.com, Inc. as we focus on serving the broader e-commerce market. This decision does not impact any existing contracts between Amazon.com and other FedEx business units or relating to international services. As previously disclosed, Amazon.com is not FedEx’s largest customer. The percentage of total FedEx revenue attributable to Amazon.com represented less than 1.3 percent of total FedEx revenue for the 12-month period ended December 31, 2018.
There is significant demand and opportunity for growth in e-commerce which is expected to grow from 50 million to 100 million packages a day in the U.S. by 2026. FedEx has already built out the network and capacity to serve thousands of retailers in the e-commerce space. We are excited about the future of e-commerce and our role as a leader in it.
Certain statements in this news release may be considered forward-looking statements, such as statements relating to management’s views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, the rate of future global e-commerce growth and our ability to successfully compete in the e-commerce market, our ability to successfully implement operational changes in the expected time frame, our ability to match capacity to shifting volume levels, and other factors which can be found in FedEx Corp.’s and its subsidiaries’ press releases and FedEx Corp.’s filings with the Securities and Exchange Commission. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
FedEx picks sides in Walmart's battle with Amazon
Dion Rabouin, Axios
June 10, 2019
FedEx announced last week it would not renew its contract to provide express shipping service for Amazon in the U.S., passing up on $850 million in annual revenue.
Why you'll hear about this again: As Amazon muscles into FedEx's turf on shipping — with its online trucking platform already undercutting the the industry's big players' average shipping rates by up to 33%, according to FreightWaves — the shipping giant sent a signal that it was getting behind Amazon's biggest rivals.
If Amazon wants to roll out Uber for package delivery shipping (its Flex delivery service is a gig economy-style program the company has been offering employees $10,000 to leave their Amazon jobs for), FedEx isn't going to caught flat-footed the way the taxi industry was.
Shots fired: "FedEx has already built out the network and capacity to serve thousands of retailers in the e-commerce space, including brands such as Target, Walgreens and Walmart," a FedEx spokeswoman said in a statement Friday.
Go deeper: Loosening Walmart's vise-grip on low-income consumers
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