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Amazon Cuts Ties with FedEx

08/14/2019

Dow Jones reports that FedEx Corporation will end its contract with Amazon.com to distribute ground packages and to provide domestic air service. This reality follows a gradual wind-down for the association between Amazon and FedEx to concentrate on the E-Commerce segment working with Target Corp, Walmart and retailers that regard Amazon as a competitor. A FedEx spokesperson noted “the change is consistent with our strategy to focus on the broader E-Commerce market”.

According to industry observers, Amazon has developed its own distribution infrastructure, leasing aircraft, purchasing vehicles and hiring drivers and independent contractors. In July, Amazon was self-sufficient to the extent of 45 percent of orders with the remainder handled by the U.S. Postal Service and United Parcel Service, excluding FedEx from the chain.

Amazon has increased the number of facilities handling orders to more than 400 locations including sorting and delivery centers adjacent to most metropolitan airports.

As with all Amazon endeavors, the Company plans to dominate any selected business space. The company has initiated a “Shipping with Amazon” service to deliver packages from retailers to consumers.