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I'm pretty sure this is exactly what they are doing. They recognized that their techs are not 100% utilized so they are going to "farm them out" so to speak. Ba
by johnward 12y ago
I'm pretty sure this is exactly what they are doing. They recognized that their techs are not 100% utilized so they are going to "farm them out" so to speak. Based on other commentors UPS and FedEx have already been doing this for years. I was in the software side of FedEx Services (Ground and Smartpost) and I did no know this.
They can probably also make a decent margin on those repairs. FedEx and UPS basically take a loss on some major shipping accounts just to get the volume. When I was at FedEx the strategy seemed to be swaying to not fight for non-revenue accounts and let UPS take them. UPS is so much bigger that they can play that game better than FedEx. The big retailers would just switch back and forth to however offered the lowest rate.