FedEx has softened speculation surrounding online retailer Amazon’s plans to build an in-house shipping network, stating that it will cost too much and take too long to complete, according to Business Insider UK.
Mike Glenn, VP of FedEx, said: “While recent stories and reports of a new entity competing with the three major carriers in the US grabs headlines, the reality is it would be a daunting task requiring tens of billions of dollars in capital and years to build sufficient scale and density to replicate existing networks like FedEx.
Read: Amazon to Create Shipping Company
“All in, we believe it is likely Amazon will make a concerted effort to take over ever larger portions of its supply chain.
“However, a full-blown Amazon parcel delivery operation would likely take years to complete, so we believe FedEx and UPS would have time to react.”