How does FEDEX UPS make money

[F18-FDX]

It seems the basic answer is that you can make millions more shipping boxes and letters rather than people, so with that in mind why dont the airlines increase some cargo operations or even start a small cargo operation like NWA does with?

It is hard to just "start a small cargo operation". As has been discussed before on this forum it is extremely difficult to start a small operation and be competitive. Serious customers aren't interested unless you are 1-reliable and 2-have a have a large enough network to get the package where they want it (not always a large city). A recent Wall Street Journal article about DHL (an already well-established company) trying to break into the domestic market stated that they would have to pump another $3-5 Billion (yes, with a "B") into the market to be competitive with FedEx. Not too many Toms, Dicks or Airlines out there with that kind of cash to start a small operation.

Very hard to "cherry pick" in cargo.

 

[JohnQ]

Recently, however, as I drove 30 minutes to the nearest Service Center, the rep there told me that you still cannot use Kinko's for the airline discount. In fact she told me that even FedEx employees cannot use Kinko's for the discount, but must use a Service Center office.

I hope that she was wrong.

FYI, I am correcting myself. I just mailed a package at Kinko's, and evidently the word has finally gotten out. Now I just have to drive 5 minutes versus 30! However, one thing to keep in mind: for time critical FedEx express shipments, the employee discount is fantastic. However, if shipping time does not matter, it is cheaper to ship via Ground (without any discount) than Express with the discount.

 

[say again]

People will pay more to ship packages than they will for themselves!!!

It's almost more expensive taking a cab to the airport than the actual plane ticket. Sad, very sad.

 

[psysicx]

Less competition.

 

[IHaveAPension]

Here's a psysicx type question... Does FedEx fly people?

 

[psysicx]

I'm confused I might not make the smartest comments but that is just stupid.But at least people talk to me.