Ecommerce titan Amazon and ubiquitous delivery service FedEx are ending their long-lasting ground shipment agreement…
FedEx is not renewing its ground shipping contract with Amazon, according to Bloomberg. It’s yet another step toward ending its relationship with the ecommerce site, which increasingly builds its own delivery infrastructure.
FedEx-Amazon Ground Shipment Contract Ending
The ground shipping contract between FedEx and Amazon was already scheduled to expire at the end of August. The news also comes only two months after the parcel service announced it would not renew its FedEx Express contract with Amazon.
FedEx has stated its business with Amazon makes up a mere 1.3 percent of its total revenue. A spokesperson for the shipping service tells The Verge:
“…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.”
Additionally, for its own part, Amazon has done more and more to bridge what it calls the “last mile” gap. The online retailer has rented cargo planes, rolled out its own delivery network, and more.