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FedEx to end Amazon contract for FedEx Express plane service

Discussion in 'The Latest FedEx Headlines' started by cheryl, Jun 9, 2019.

  1. cheryl

    cheryl I started this. Staff Member

    FedEx to end Amazon contract for FedEx Express plane service - Reuters

    FedEx Corp on Friday decided to not renew its contract with Amazon.com Inc for U.S. cargo delivery through FedEx Express, the unit that delivers packages on planes, a move that reflects the broader trend of the e-commerce company moving services in-house.

    Amazon has been building out its own delivery network of planes, trucks and vans, a development that is seen posing a potential long-term challenge to FedEx and delivery rival United Parcel Service Inc, both of which count Amazon as a customer.

    FedEx described the decision as a strategic move that would allow it to focus on the broader e-commerce market, a group that would include rivals of Amazon scaling up one- and two-day delivery. FedEx forecast that the market would double to 100 million packages per day in the United States by 2026.