FedEx announced it would not renew Amazon’s U.S. domestic flying contract, continuing its multi-year process of untethering from Amazon.com Inc. This does not affect Amazon’s use of FedEx’s ground parcel delivery, nor does it impact Amazon’s U.S. last-mile and international business with FedEx. According to FedEx, Amazon accounted for just 1.3 percent of FedEx’s total revenue for the 2018 calendar year, and in a statement, FedEx said it made the move to focus more of its resources on the broader e-commerce sector. FedEx has been moving away from Amazon for years, as offering significant price discounts compressed the carrier’s margins. While its focus shifts to other opportunities and existing customers, Amazon continues to pursue linking its own logistics chain, including warehouses, planes, delivery trucks, cargo ships and now planes all over the world. Already, Amazon has launched night flights to and from its hub in Wilmington.
FedEx Parts Ways with Amazon
