announced Friday that it isn’t renewing its US contract with Amazon
to transport packages on FedEx Express. The move comes as FedEx and Amazon compete more directly in delivery logistics
Amazon is under increased pressure to deliver packages quickly. In April, Amazon said it planned to begin delivering packages to Prime customers in one day
rather than two. FedEx followed up in May with plans to deliver seven days a week
FedEx said in a press release it plans to focus on serving the broader e-commerce market with continued partnerships with brands such as Walmart and Target. The company said Amazon accounted for less than 1.3% of its total revenue in 2018.
A FedEx spokeswoman told CNN Business the decision impacts only air transportation. Other contracts between FedEx and Amazon (AMZN)
“We respect FedEx’s decision and thank them for their role serving Amazon customers over the years,” Amazon said in a statement.
The contract ends June 30.
The two companies increasingly compete across several areas. For example, both companies are developing autonomous ground robots
that drive on sidewalks to deliver packages in neighborhoods. Earlier this week, Amazon unveiled its latest drone
that is months away from making deliveries.
Amazon also has said it will invest $1.5 billion in a hub
for its cargo planes near Cincinnati, Ohio.