FedEx Express will not renew contract with Amazon
The US-based courier giants, FedEx Express, will not extend its domestic contract with Amazon and will focus on serving the broader e-commerce market, according to Supply Chain Dive.
With the contract set to expire on 30 June, the company decided against renewing due to “significant demand and opportunity for growth in e-commerce” and stressed that only 1.3% of FedEx’s total revenue comes from Amazon.
The move will not affect any existing contracts or Amazon shipments through other FedEx business units, like FedEx Ground, or last-mile deliveries and international shipments.
Following the end of the partnership, FedEx has displayed a lack of interest in delivering packages for a firm and remains keen on expanding its own air network.
In an email to Supply Chain Dive, a spokesperson for Amazon, said: "We respect FedEx’s decision and thank them for their role serving Amazon customers over the years.”