On the 7th of August 2019, FedEx has announced
that it is going to end its collaboration with the e-commerce giant Amazon. This implies that it will stop its ground
delivery service of small packages. Some advance that this decision is a
follow-up to the fact that the online retailer is building is own delivery solutions.
This move by the US delivery company comes two months after
its decision not to renew its contract with Amazon
for cargo delivery in the United States through its plane-based express
facility. Last year, the e-commerce firm accounted for less than 1.3 percent of
the carrier company’s revenue. In a statement, FedEx advanced that “this
change is consistent with our strategy to focus on the broader e-commerce
market”. The company is looking to expand its offerings and to serve other
online shopping businesses. These include Amazon’s rivals.
Speaking about this decision, Amazon said that it is “constantly
innovating to improve the carrier experience and sometimes that means re-evaluating
[their] carrier relationships”. The e-commerce giant has been expanding its
delivery network of planes, trucks and vans. This development can be regarded
as a potential long-term threat to FedEx.
It also competes with United Parcel Service. Both these firms have been working
with Amazon for a long time.
FedEx
will no longer deliver products for Amazon
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