FedEx is cutting another tie with online retailer Amazon. The company announced it would end delivering ground parcels at the end of this month when its contract expires.
The news was first reported by Bloomberg early Wednesday morning.
This report follows the June announcement by FedEx to stop Express deliveries for Amazon in the US as the logistics giant pivots away from Amazon.
“This change is consistent with our strategy to focus on the broader e-commerce market, which the recent announcements related to our FedEx Ground network have us positioned extraordinarily well to do.”
Amazon will still use FedEx for international shipments
FedEx will continue to handle international deliveries for Amazon, but those days could be numbered too.
Amazon is building a Prime Air hub at Cincinnati/Northern Kentucky where it currently shares logistics space with DHL.
“We are constantly innovating to improve the carrier experience and sometimes that means reevaluating our carrier relationships. FedEx has been a great partner over the years and we appreciate all their work delivering packages to our customers.”
Amazon spokesperson to CNBC
The decision by FedEx is likely due to Amazon’s push to enter the US logistics space.
Amazon continues to grow its delivery network of independently owned, but Amazon-branded, delivery trucks in the US.
Many observers believe the company could become a significant competitor to FedEx, UPS, and USPS as it could make the delivery network available to non-Amazon associated merchants.
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