Brooke Sutherland, Columnist

FedEx’s Amazon Freeze-Out Sets Up Delivery Wars

Its decision to cancel Amazon's ground-delivery contract speaks volumes about the extent to which it views the e-commerce giant as a threat.

August 7, 2019 at 1:51 PM UTC

By Brooke Sutherland

Brooke Sutherland is Bloomberg News' Boston bureau chief and writes the Industrial Strength Newsletter. She was previously a Bloomberg Opinion columnist covering deals and industrial companies and an M&A reporter for Bloomberg News.

For FedEx and Amazon, it’s no longer a two-way street.
Photographer: Christopher Lee/Bloomberg

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FedEx Corp. seems to have finally realized it’s futile to label Amazon.com Inc.’s delivery aspirations as a “fantastical” threat. Now it’s waging an outright war on a company it appears to increasingly view as a competitor.

FedEx won’t renew Amazon’s ground-delivery contract when the agreement expires at the end of this month, the company said in statement first reported by Bloomberg News on Wednesday. This follows a June announcement that FedEx would cease U.S. air-delivery services for Amazon.