- FedEx announced on Friday that it would not be renewing a contract with Amazon having to do with its Express business in the United States.
- FedEx Express is the company’s quick shipping option.
- The change comes at the same time as FedEx prioritizes its business to focus on e-commerce, including extending its delivery schedule to seven days a week.
FedEx is ditching Amazon in a meaningful way.
The company announced on Friday it is ditching its contract with Amazon to deliver packages for the company using its FedEx Express service.
“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,” the company’s statement reads.
Packages delivered using FedEx Express arrive either overnight or in two days, which aligns with Amazon’s one-day and two-day Amazon Prime shipping offers. Friday’s announcement does not affect Amazon’s partnership with other FedEx delivery services, like FedEx Ground.
FedEx’s statement goes on to explicitly state that Amazon is far from being the delivery company’s largest customer.
“As previously disclosed, Amazon.com is not FedEx’s largest customer,” the statement reads. “The percentage of total FedEx revenue attributable to Amazon.com represented less than 1.3 percent of total FedEx revenue for the 12-month period ended December 31, 2018.”
Amazon did not immediately respond to Business Insider’s request for comment.
FedEx says it is still focused on e-commerce delivery and will focus on “serving the broader e-commerce market.”
On May 30, FedEx announced it will be launching seven-days-a-week residential delivery service starting in January 2020.
Author: Dennis Green