FedEx announced on June 7th that it would not renew the FedEx Express domestic contract with Amazon:
“FedEx has made the strategic decision to not renew the FedEx Express US domestic contract with Amazon.com, Inc. as we focus on serving the broader e-commerce market.”
Express is FedEx’s fast shipping option, with packages arriving either overnight or in two days, which aligns with Amazon’s Prime one-day and two-day shipping offers. This announcement does in impact Amazon’s relationship with FedEx on other, slower, delivery services, including FedEx ground.
FedEx reiterated that Amazon is not its largest customer, and the total revenue FedEx attributes to Amazon in 2018 was 1.3% of total. In a statement, Amazon struck a conciliatory tone, with an unnamed Amazon spokesperson saying, “We respect FedEx’s decision and thank them for their role serving Amazon customers over the years”.
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