FedEx not renewing shipping contract with Amazon
MEMPHIS, Tenn. — FedEx will not renew its shipping contract with one of the world’s largest online retailers and instead focus on its own shipping network.
A FedEx spokesperson said e-commerce in the United States is expected to grow to between 50 million to 100 million packages per day by 2026, and the company has prepared its network to serve those thousands of customers.
“FedEx has already built out the network and capacity to serve thousands of retailers in the e-commerce space, including brands such as Target, Walgreens and Walmart,” a statement from the Memphis-based logistics company reads. “FedEx has made the strategic decision to not renew our FedEx Express contract with Amazon as we focus on serving the broader market. We are excited about the future of e-commerce and our role as a leader in it.”
FedEx said Amazon accounted for only 1.3% of its shipments in the U.S.
Amazon has been recently adding to its own shipping and logistics capabilities.
“We respect FedEx’s decision and thank them for their role serving Amazon customers over the years,” an Amazon spokesperson said.
The contract that is not being renewed only covers FedEx Express, not other units of the FedEx brand, FedEx said in a statement.