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FedEx ends Amazon ground deliveries

Credit: Reuters Studio
Published on August 7, 2019 - Duration: 00:53s

FedEx ends Amazon ground deliveries

FedEx said it's terminating its contract with Amazon.com for small-package ground deliveries.

Fred Katayama reports.

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FedEx ends Amazon ground deliveries

FedEx will soon be doing even less work for Amazon.

It said it's ending its contract for Amazon's small-package deliveries on the ground.

This comes just two months after the package delivery company terminated its air express contract for Amazon's cargo in the U.S. Analysts say this could result in higher volumes for FedEx's archrival, UPS.

FedEx would keep handling Amazon's international shipments.

FEDEX said in a statement that it made the change to - in its words - "focus on the broader e-commerce market." Analysts say it makes little sense for Amazon to partner with FedEx because UPS gives it a better rate for package delivery on planes.

Amazon was unavailable for comment.

The online retailer is seen as a long-term challenge to FedEx and UPS as it builds out its own delivery network of planes, trucks and vans.

Shares of both FedEx and Amazon retreated in early trading Wednesday.

-------------- FedEx will soon be doing even less work for Amazon.

It said it's ending its contract for Amazon's small-package deliveries on the ground.

This comes just two months after the package delivery company terminated its air express contract for Amazon's cargo in the U.S. Analysts say this could result in higher volumes for FedEx's archrival, UPS.

FedEx would keep handling Amazon's international shipments.

The company said in a statement that it made the change to - in its words - "focus on the broader e-commerce market." Analysts say it makes little sense for Amazon to partner with FedEx because UPS gives it a better rate for package delivery on planes.

Amazon was unavailable for comment.

The online retailer is seen as a long-term challenge to FedEx and UPS as it builds out its own delivery network of planes, trucks and vans.

Shares of both FedEx and Amazon retreated in early trading Wednesday.

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