FedEx Trims Amazon Ties as Retailer Flexes Delivery Muscles
- Courier says it won’t renew contract for U.S. air services
- Focus will be on other customers such as Walmart, Target
A worker pushes Amazon.com Inc. packages in front of a FedEx Corp. delivery truck in New York, U.S., on Monday, Nov. 26, 2018.
Photographer: Christopher Lee/BloombergThis article is for subscribers only.
FedEx Corp. said it wouldn’t renew its U.S. air-delivery contract with Amazon.com Inc., paring a key customer relationship as the largest online retailer deepens its foray into freight transportation.
The new focus will be on “serving the broader e-commerce market,” with U.S. package volume from online shopping expected to double by 2026, FedEx said in a statement Friday. The Amazon contract with the Express air division expires at the end of this month, and doesn’t cover international operations or other services such as FedEx’s ground deliveries.