From CNBC-
FedEx said Wednesday it will end its ground-delivery contract with Amazon and won’t renew it at the end of the month.
“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,” a FedEx spokesperson said.
Shares of FedEx and Amazon were down at least 1% in premarket trading. Bloomberg first reported FedEx’s decision.
“We are constantly innovating to improve the carrier experience and sometimes that means reevaluating our carrier relationships,” an Amazon spokesperson said. “FedEx has been a great partner over the years and we appreciate all their work delivering packages to our customers.”
FedEx announced in June that it is ending its express U.S. shipping contract, which only affected air services. At the time, FedEx said it was a “strategic decision” that would not affect its other contracts with Amazon. At the time, FedEx said less than 1.3% of total revenue was attributable to Amazon during the 12-month period ended Dec. 31.
Dave Clark, senior vice president of worldwide operations at Amazon, said in a tweet that he had “nothing but respect” for FedEx and called the move “conscious uncoupling at its finest.” Read more...
