Fedex drops Amazon to focus on broader e-commerce market

FedEx will stop delivering Amazon packages by air express in the U.S. after June 30 the company said in a statement to its investors.

FedEx has made the strategic decision to not renew the FedEx Express U.S. domestic contract with Amazon.com, Inc. and focus on serving the broader e-commerce market instead.

The percentage of total FedEx revenue attributable to Amazon.com represented less than 1.3 % of total FedEx revenue for the 12-month period ended December 31, 2018.

In the statement Fedex said: “There is significant demand and opportunity for growth in e-commerce which is expected to grow from 50 million to 100 million packages a day in the U.S. 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.”