FedEx will not offer express flight delivery service for Amazon packages across the United States.
FedEx on Friday declined to renew its US express air shipping contract with Amazon. The decision comes in as the cargo delivery rivalry between Amazon and FedEx grows.
The courier company said via a statement that it’s a strategic decision which would not cause any changes on other existing contracts it has with Amazon, which includes international shipping.
FedEx further said that Amazon wasn’t its major customer, as it only accounted for around 1.3 percent of its overall revenue last year. Moreover, the company’s stock price also dropped by 1 percent while the stocks of Amazon didn’t budge.
The move comes in at a time when Amazon is vigorously investing on its in-house shipping and delivery network. In fact, the e-commerce giant had recently introduced a program known as ‘Delivery Service Partners’ that allows entrepreneurs to operate their own delivery business locally, with Amazon Prime brand logos printed on the truck.
Moreover, the company also has been investing on cargo planes and trucks, while developing new services which streamline its own truck deliveries.
Notably, FedEx’s US express shipping contract with Amazon will end later this month, on 30 June.
