FedEx vs UPS | We’re Gonna Need a Bigger Plane | 3

Business Wars

Wondery

History, Business, David Brown, Management

4.6 • 13.2K Ratings

🗓️ 24 August 2020

⏱️ 23 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Finally financially stable, FedEx takes on the US government to overturn regulations that limit the size of the planes they can fly. Convinced the regulations are limiting its growth, FedEx launches a multi-pronged strategy to persuade Congress to change the rules.

And UPS realizes it needs to compete directly with FedEx and finally buys its own planes to offer next-day air service.

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Transcript

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0:00.0	Hey, prime members, you can listen to business wars, add free on Amazon music.
0:04.8	Download the app today.
0:14.6	It's November 1974, Memphis.
0:18.2	A group of FedEx executives are at the Sawmill restaurant near the company's headquarters.
0:22.9	It's become a tradition to retire thereafter business hours to continue hashing out today's
0:27.3	problems.
0:28.3	And today there is a big one, an executive leans forward.
0:33.6	We might have to start turning down packages.
0:36.6	FedEx CEO Fred Smith slams his fork down on the table emphatically.
0:40.8	No, this UPS strike isn't going to last forever.
0:44.6	And when it's over a whole bunch of customers are going to run right back to them.
0:48.4	While they're with us, I want them to have the best experience possible.
0:52.5	Plant that seed.
0:54.0	That means we don't turn down a single package.
0:57.3	Roger Frock, the company's chief operating officer, looks at him pleadingly.
1:01.8	Fred, we have to consider it.
1:03.8	We physically can't fit any more boxes on the planes.
1:07.3	And even with every plane making double runs, we're barely making our deliveries.
1:12.2	With UPS drivers on strike in New York, customers have turned to FedEx, leading to a huge spike
1:17.6	in business.
1:18.8	The company used to average 30,000 packages per month, but now they're on pace to hit
1:24.1	300,000 packages in November.
	...

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