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Amazon-FedEx Split Draws Battle Lines in Online Delivery Feud

  • End of ground contract carries risk for courier and retailer
  • UPS poised to carry more freight amid industry profit pressure
FedEx Corp. Deliveries As Cyber Monday Deals Hit
Photographer: Christopher Lee/Bloomberg

FedEx Corp.’s retreat from handling packages for Inc. signals that the lines are being drawn in the battle over surging e-commerce shipments.

The end of two delivery contracts with Amazon means FedEx will have to make up for the lost sales by extending a push to serve other customers such as Walmart Inc. Amazon will have to rely more on United Parcel Service Inc. and the U.S. Postal Service as it seeks to fulfill a pledge for next-day delivery to top customers -- and build out its own shipping network.