We analyze where the logistics giant is placing its bets to grow revenue.
For FedEx, losing a multi-billion dollar deal could be good business.
The logistics giant is ceding its USPS contract — worth ~$2B per year — to its competitor UPS in September 2024. But despite the upcoming loss in revenue, FedEx’s recent earnings have exceeded expectations and it has actually seen its share price reach an all-time high since USPS announced it wouldn’t renew.
As FedEx cut costs and reconfigures its shipping network to focus less on expensive-to-maintain air cargo (which USPS relied upon heavily), it now has more wiggle room to ramp up its investments in areas that promise a long-term pay-off.
Want to see more research? Join a demo of the CB Insights platform.
If you’re already a customer, log in here.
