• Latest
  • Trending
Amazon threat to FedEx overblown, it’s the postal service that’s in trouble, JP Morgan says

Amazon threat to FedEx overblown, it’s the postal service that’s in trouble, JP Morgan says

February 19, 2018
4 dead, 52 arrested after Donald Trump supporters storm US Capitol

4 dead, 52 arrested after Donald Trump supporters storm US Capitol

January 7, 2021

China criticizes US order against dealing with Chinese apps

January 6, 2021

US has dual policy on Afghan peace process: MPs

January 5, 2021
‘Good riddance,’ says China snub Germany leaving UN Security Council

‘Good riddance,’ says China snub Germany leaving UN Security Council

December 25, 2020
Sharon Osbourne reveals she tested positive for COVID-19

Sharon Osbourne reveals she tested positive for COVID-19

December 15, 2020
Apple Adding Privacy Fact Labels to App Store Items

Apple Adding Privacy Fact Labels to App Store Items

December 15, 2020
More Republicans finally accept Biden win after U.S. Electoral College certifies vote

More Republicans finally accept Biden win after U.S. Electoral College certifies vote

December 15, 2020
Rhode Island casts 4 Electoral College votes for Biden

Rhode Island casts 4 Electoral College votes for Biden

December 15, 2020
Rhode Island School To Stagger Return After Holiday Break

Rhode Island School To Stagger Return After Holiday Break

December 15, 2020
Twitter, Facebook face labeling test on Trump’s election posts

Twitter, Facebook face labeling test on Trump’s election posts

November 4, 2020
Democratic hopes to flip US Senate dim as red wall holds for now

Democratic hopes to flip US Senate dim as red wall holds for now

November 4, 2020
US election: What happens next?

US election: What happens next?

November 4, 2020
Wednesday, January 20, 2021
No Result
View All Result
  • Region
    • Delaware
    • Maine
    • Massachusetts
    • New Hampshire
    • New Jersey
    • New York
    • Pennsylvania
    • Rhode Island
    • Vermont
  • U.S. News
  • National Security
    • Defense
    • Politics
    • Terrorism
  • World News
    • Africa
    • Asia
      • Australia & New Zealand
      • China
      • India
      • Japan
      • North & South Korea
    • Canada
    • Europe
      • Germany
      • Russian Federation
    • Latin America
      • Mexico
    • Middle East
    • United Kingdom
  • Economy
    • Business
    • Science
  • Sports
    • Auto Racing
    • Cycling
    • Golf
    • MLB
      • Boston Red Sox
      • New York Mets
    • NBA
      • Boston Celtics
      • Brooklyn Nets
    • NFL
      • New England Patriots
      • Philadelphia Eagles
      • New York Giants
      • New York Jets
    • NHL
      • Boston Bruins
      • Buffalo Sabres
      • New Jersey Devils
      • New York Islanders
      • New York Rangers
      • Philadelphia Flyers
      • Pittsburgh Penguins
    • Soccer
    • Tennis
    • Water Sports
  • Culture
    • Art
    • Books & Literature
    • Fashion
    • Health
    • History
    • Lifestyle & Family
    • Music
    • Religion
    • Television & Movies
    • Theatre
    • Travel
      • Great Outdoors
      • Rhode Island Travel
    • Women
  • Environment
    • Climate Change
    • Green News
    • Greenpeace
    • Oceans & Marinelife
    • Wildlife
  • Region
    • Delaware
    • Maine
    • Massachusetts
    • New Hampshire
    • New Jersey
    • New York
    • Pennsylvania
    • Rhode Island
    • Vermont
  • U.S. News
  • National Security
    • Defense
    • Politics
    • Terrorism
  • World News
    • Africa
    • Asia
      • Australia & New Zealand
      • China
      • India
      • Japan
      • North & South Korea
    • Canada
    • Europe
      • Germany
      • Russian Federation
    • Latin America
      • Mexico
    • Middle East
    • United Kingdom
  • Economy
    • Business
    • Science
  • Sports
    • Auto Racing
    • Cycling
    • Golf
    • MLB
      • Boston Red Sox
      • New York Mets
    • NBA
      • Boston Celtics
      • Brooklyn Nets
    • NFL
      • New England Patriots
      • Philadelphia Eagles
      • New York Giants
      • New York Jets
    • NHL
      • Boston Bruins
      • Buffalo Sabres
      • New Jersey Devils
      • New York Islanders
      • New York Rangers
      • Philadelphia Flyers
      • Pittsburgh Penguins
    • Soccer
    • Tennis
    • Water Sports
  • Culture
    • Art
    • Books & Literature
    • Fashion
    • Health
    • History
    • Lifestyle & Family
    • Music
    • Religion
    • Television & Movies
    • Theatre
    • Travel
      • Great Outdoors
      • Rhode Island Travel
    • Women
  • Environment
    • Climate Change
    • Green News
    • Greenpeace
    • Oceans & Marinelife
    • Wildlife
No Result
View All Result
No Result
View All Result

Amazon threat to FedEx overblown, it’s the postal service that’s in trouble, JP Morgan says

February 19, 2018
in Business, Economy
0
Home Economy Business

RelatedPosts

Amazon’s murky world of one-star reviews

Pentagon awards $10bn cloud computing deal to Microsoft, snubbing Amazon

The US is more likely to end the trade war than face a ‘Trump recession,’ JP Morgan’s top quant says

As Democrats Lean Left, Will Voters Follow?

Google outlines $13bn US investment

Post Views: 226

 

Amazon‘s reported entry into delivery service won’t be as bad for UPS and FedEx as it will be for the United States Postal Service, according to a J.P. Morgan analyst in the space.

“Sentiment remains cautious on the two stocks based on a heightened risk of disruption. We believe the headline overlooks the primary company at risk, which is the U.S. Postal Service,” wrote analyst Brian Ossenbeck. “We estimate the USPS is Amazon’s largest carrier so not only does it stand to lose volumes from Shipping with Amazon, but it generally lacks the same labor flexibility and service offerings; postal workers are unionized and Amazon Flex drivers can also provide premium products and services such as perishable goods and same day deliveries.”

Ossenbeck’s note came one week after The Wall Street Journal reported that the e-commerce giant is gearing up to launch its own delivery service – called Shipping with Amazon (SWA) – a move many deem a jab at carriers UPS and FedEx.

Since the news broke last Friday, shares of both companies have underperformed the broader market: UPS and FedEx are up 0.3 percent and 4 percent, respectively, versus the S&P 500’s 4.4 percent rebound.

UPS fell nearly 1 percent Friday, while FedEx slipped 0.34 percent to $244.19. The analyst likes FedEx the most of the two with an overweight rating and a price target of $315 on the shipper. He is neutral on UPS and his 12-month price forecast is $139.

“With a localized pick-up and delivery system beginning within the Amazon ecosystem, the service is not directly comparable to the standard ground offerings of either public carrier but rather the final mile of the USPS,” Ossenbeck added. “While UPS and FedEx could face pressure if the capabilities expand into business-to-business or international deliveries, we expect the lost volumes to SWA or the FBA Onsite optimization will actually provide some relief to the significant mix pressure from an accelerating pace of business-to-consumer volume growth.”

Amazon started taking most of its packages directly to the Postal Service in 2013, a way of avoiding the expensive last leg of the delivery in high-density metro areas.

However, pundits argue that USPS is underselling its services, with e-commerce giants taking advantage of the universal service obligation that the USPS must maintain by law.

Source :
CNBC
Tags: AmazonFedExJP MorganoverblownpostalServicetrouble
ShareTweetShare

Related Posts

Business

China criticizes US order against dealing with Chinese apps

January 6, 2021
‘Good riddance,’ says China snub Germany leaving UN Security Council
Asia

‘Good riddance,’ says China snub Germany leaving UN Security Council

December 25, 2020
Apple Adding Privacy Fact Labels to App Store Items
Business

Apple Adding Privacy Fact Labels to App Store Items

December 15, 2020
Best Accounting Software and Invoice Generators of 2020
Business

Best Accounting Software and Invoice Generators of 2020

October 27, 2020
The Ultimate List of Small Business Software & Tools
Business

The Ultimate List of Small Business Software & Tools

October 26, 2020
Next Post
This founder lived in a nursing home for 3 months to get his start-up off the ground

This founder lived in a nursing home for 3 months to get his start-up off the ground

Translate

Popular Post

4 dead, 52 arrested after Donald Trump supporters storm US Capitol
Featured

4 dead, 52 arrested after Donald Trump supporters storm US Capitol

January 7, 2021
0

The chaotic and violent scene unfolded at the US Capitol as supporters of President Donald Trump swarmed the building to...

Read more
Mattis to Reassure Nervous Asian Allies

Mattis to Reassure Nervous Asian Allies

October 13, 2017
Asian Company Invest In America As Trump Takes Office

Asian Company Invest In America As Trump Takes Office

October 13, 2017
Trump lost: 9th Circuit Court declines restoring travel ban

Trump lost: 9th Circuit Court declines restoring travel ban

October 13, 2017
Central Intelligence: Gina Haspel new Deputy chief

Central Intelligence: Gina Haspel new Deputy chief

October 13, 2017
  • About Us
  • Creative Commons
  • Disclaimer
  • Privacy Policy
  • Terms & Conditions
  • Contact Us

Topics

Follow Us

About Us

Varnum Continental is part of Varnum Continental Media Group LLC, which daily news around the globe.

© 2011 Varnum Continental

No Result
View All Result
  • Region
    • Delaware
    • Maine
    • Massachusetts
    • New Hampshire
    • New Jersey
    • New York
    • Pennsylvania
    • Rhode Island
    • Vermont
  • U.S. News
  • National Security
    • Defense
    • Politics
    • Terrorism
  • World News
    • Africa
    • Asia
      • Australia & New Zealand
      • China
      • India
      • Japan
      • North & South Korea
    • Canada
    • Europe
      • Germany
      • Russian Federation
    • Latin America
      • Mexico
    • Middle East
    • United Kingdom
  • Economy
    • Business
    • Science
  • Sports
    • Auto Racing
    • Cycling
    • Golf
    • MLB
      • Boston Red Sox
      • New York Mets
    • NBA
      • Boston Celtics
      • Brooklyn Nets
    • NFL
      • New England Patriots
      • Philadelphia Eagles
      • New York Giants
      • New York Jets
    • NHL
      • Boston Bruins
      • Buffalo Sabres
      • New Jersey Devils
      • New York Islanders
      • New York Rangers
      • Philadelphia Flyers
      • Pittsburgh Penguins
    • Soccer
    • Tennis
    • Water Sports
  • Culture
    • Art
    • Books & Literature
    • Fashion
    • Health
    • History
    • Lifestyle & Family
    • Music
    • Religion
    • Television & Movies
    • Theatre
    • Travel
      • Great Outdoors
      • Rhode Island Travel
    • Women
  • Environment
    • Climate Change
    • Green News
    • Greenpeace
    • Oceans & Marinelife
    • Wildlife

© 2011 Varnum Continental