FedEx will not renew its FedEx Express US domestic contract with Amazon.com because the US parcels giant wants to “focus on serving the broader e-commerce market”.
FedEx said that the “strategic decision” does not impact any existing contracts between Amazon.com and other FedEx business units or relating to international services.
An investor statement said: “As previously disclosed, Amazon.com is not FedEx’s largest customer. The percentage of total FedEx revenue attributable to Amazon.com represented less than 1.3 percent of total FedEx revenue for the 12-month period ended December 31, 2018.”
FedEx added: “There is significant demand and opportunity for growth in e-commerce which is expected to grow from 50m to 100m packages a day in the US by 2026.
“FedEx has already built out the network and capacity to serve thousands of retailers in the e-commerce space. We are excited about the future of e-commerce and our role as a leader in it.”
