eft is now Reuters Events - LEARN MORE
FedEx further distances itself from Amazon with end of ground delivery contract
Contract not to be renewed and follows on from termination of air cargo contract with the online e-commerce giant
According to Bloomberg, which received an email statement from FedEx, the company will see its ground-delivery contract with Amazon come to an end at the close of August.
FedEx still has a contract with Amazon for international deliveries.
The end of the contract underlines a divergence in strategy between FedEx and Amazon, as well as UPS. Amazon has begun leasing its own aircraft for delivery and expanding its in-house delivery capacity on the ground, as well as continuing its breakneck expansion of fulfilment centres. FedEx, meanwhile, is restructuring its global business to bring more deliveries back in-house, lessen dependence on Amazon, cuts costs, improve package handling capabilities, move to seven-day delivery and improve its European arm. UPS on the other hand, has doubled down on Amazon, and has increasingly taken on overnight delivery orders for the company.
“This change is consistent with our strategy to focus on the broader e-commerce market,” FedEx said in the statement given to Bloomberg.
Earlier this year, FedEx began listing Amazon as a key competitor in its financial reports.