FedEx to end ground-delivery contract with Amazon
FedEx will end its ground-delivery deal with Amazon by building its own shipping network, the company confirmed on Wednesday.
"This change is consistent with our strategy to focus on the broader e-commerce market, which the recent announcements related to our FedEx Ground network have positioned us extraordinarily well to do," a spokesperson said in an emailed statement to FOX Business.
When the contract expires at the end of the month, FedEx will not renew it, the company told Bloomberg News, which first reported the news.
Amazon did not immediately respond to a request for comment, but the company's senior vice president of operations called it "conscious uncoupling at its finest."
"Nothing but respect for FedEx but they were very small piece of our network and vice versa, we wish them nothing but the best (conscious uncoupling at its finest). We have great strategic partners who are part of our long term plan and we appreciate what they do for our customers," he said in a tweet.
The news comes almost one month after FedEx revealed it would not renew its Express U.S. domestic contract with the world's largest retailer, instead directing its focus on "serving the broader e-commerce market."
“There is significant demand and opportunity for growth in e-commerce which is expected to grow from 50 million to 100 million packages a day in the U.S. by 2026,” the company said at the time.
FedEx's decision will require Amazon to find a new way to deliver millions of packages ahead of the critical holiday season, as the e-commerce behemoth looks to speed up delivery.