FedEx will not renew a contract with Amazon to provide express delivery for the e-commerce giant’s packages in the United States.
FedEx, which made the announcement Friday, said in a statement the change would not affect other existing contracts with Amazon or international services. FedEx Express only impacts air services. FedEx will still serve as a carrier for Amazon for last-mile deliveries.
Amazon said in a statement that it respects FedEx’s decision and thanked them for its “role serving Amazon customers over the years.”
FedEx tempered the news by stating that Amazon is not its largest customer. The percentage of total FedEx revenue attributable to Amazon.com represented less than 1.3% of total FedEx revenue for the 12-month period ended December 31, 2018, according to FedEx.
The decision follows an explosion in e-commerce, a trend that is expected to continue. FedEx estimates that e-commerce is expected to grow from 50 million … Read the rest