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FedEx CEO dismisses reports of Amazon challenge as fantastical

Published Thu, Mar 17, 2016 · 09:50 PM

Dallas

WHEN FedEx Corp chief executive officer Fred Smith looks at Amazon.com Inc, he sees a valuable customer - not a mortal danger.

A major competitive threat from Amazon to FedEx or United Parcel Service Inc is unlikely because the online retailer would have to invest tens of billions of dollars and years of effort to build its own delivery network, Mr Smith said on Wednesday. Instead, Amazon is seeking better control of its inventory and "last-mile" shipments to customers, FedEx said.

"Concerns about industry disruption continue to be fuelled by fantastical - and I chose this word carefully - articles and reports," Mr Smith said on a conference call with analysts and investors. "In all likelihood, the primary deliverers of e-commerce shipments for the foreseeable future will be UPS, the US Postal Service an…

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