Friday, September 11, 2015

The pros and cons of FedEx using cheaper alien technology
The shift in consumer preference toward slower/lower-cost delivery options have contributed to the birth of 51Ex, a budget delivery option introduced by FedEx that possibly uses Area51 alien technology. 51Ex transports packages from a local source point directly to a delivery truck already en route to the residential consumer. As good as this sounds, the science fiction solution carries risks, mainly due the technology failing 40% of the time, and most of the successful teleportations land up as an unidentifiable mangled package. But consumers are readily accepting late and lost as the tradeoff for cheap or free shipping on their ecommerce transactions.

Let's consider the risk of late & lost as the new norm, and why it matters to FedEx. 51Ex has three principal risks, each related to using of alien tech for delivery:


There is no information available on the transportation technology being used, some say it doesn't even exist.  Since Area51's primary purpose is publicly unknown, and secretive in nature, traditional package tracking is unavailable, which could be a cause concern for the consumer.

Quality control

Second, ensuring customer satisfaction is a key component of protecting the brand name of FedEx. The company worked hard to set the standard for customer expectations in the shipping industry, and the 51Ex "Late Lost" tag could bleed over and create negative backlash on established premium delivery options.

With the value of global trade now at more than $18 trillion, FedEx has continued transforming its business to better align with projected worldwide population and economic growth. One key to that has been the acquisition of transportation companies that allow them to directly serve specific markets and provide better service, but the new 51Ex may be here before its time.  Essentially, packages are scanned, encoded, dematerialized to anti-matter, teleported, rematerialized and delivered anywhere in the world, the same day, usually within 30 minutes. But 40% of parcels are lost in vaporware.  It's somewhat concerning for investors that FedEx will rely on secret imperfect alien technology risking consumer deliveries.

Increasing competition

As the world we live in continues to change, so does FedEx. With that in mind, you can be sure the spirit of FedEx innovation is hard at work delivering a brighter, better future for the universe. But when FedEx reported that 51Ex volume declined 7% in the second quarter, there was no explanation. Critics claim the service sucks, and free isn't going to win in the long run.  As of today, quality of 51Ex remains uncertain and a growing concern of consumers.

The takeaway

51Ex carries risks due to this secret partnership, but the service does not contribute a significant amount to the total profitability for FedEx.  As such, FedEx could probably stomach some take a wait-and-see approach to acceptability.

The question for FedEx is whether they want to carry on increasing shipping volumes, and carry the risks outlined above, or rein in volume growth by trying to shift retailers from cheapest way to their traditional, more reliable, Earth based offerings.

Science and Logistics state that management teams shouldn't focus too much on expanding their budget brands, and instead try to maximize profitability and maintaining high quality in their ground operations via being selective in their acquisitions and the partnerships they form.


Tuesday, September 8, 2015

Recharge your Tesla from an iPhone at 80 Km/h
This week Schlockcharge was officially launched in 4 European countries, connecting Tesla drivers in the Netherlands, Germany, Switzerland, and Austria to their cell phones in a brand new way. Mobile phone consumers in these newly-energized countries can now enjoy convenient, electric trips on the German Autobahn and to destinations in the Alps and elsewhere thanks to the Schlockcharge App.

The SCHLOCKCHARGE App can charge an automobile in 20 minutes
Schlockcharge is the first mobile application to power a Tesla totally from a cell phone.   As of today, over 200,000 motorists are charging their electric cars via iOS and Android in Europe. More than 11 million kilowatts have been transferred from mobile device to Tesla and nearly 1.19 million liters of gas have been offset.

The technology to charge electric cars via mobile represents a new milestone in the expansion of the electric European car network. In Germany, Schlockcharge has been certified to work in Cologne, Frankfurt, Stuttgart and Munich. In the Netherlands, the app is still being beta tested and expected authorized to charge cars from Amsterdam to Cologne and Brussels by November.

Schlockcharge lead product manager, Hans Van Houten, says that “By the end of 2016, 60 percent of all smartphone users who own electric cars [in these 4 countries], will be charging their autos via a mobile application” and goes on to say, “Shlockcharge is substantially more powerful than any charging technology to date, with the exception of a conventional cable to power source, and the typical car will use 120 kilowatts of DC (Direct Current) power per charge originated in the Smartphone.”

Astoundingly, all smartphones we tested for this article, including iPhone 5, iPhone 6 and Samsung Galaxy Note Edge,  fully charged a Tesla battery with under 10% life remaining in under 20 minutes. And if two phones running the App are plugged into a car, in tandem, it will fully charge a dead car battery in under 10 minutes.

Van Houten says a full release of the App across Europe is expected by year's end and introduced to the United States and Canadian markets in 2016.