As Amazon continues to beef up its delivery network, its partnership with FedEx Corp has taken a hit. Amazon has instead grown into a competitor for FedEx, and the shipping company has officially terminated its partnership with Amazon after months of will-they/won’t-they speculation, according to a report by Reuters. FedEx will no longer participate in Amazon’s small-package ground delivery service, and will instead focus on its other operations.
“This change is consistent with our strategy to focus on the broader e-commerce market,” FedEx said in a statement. Reuters translated that the carrier company’s decision could be driven by plans to partner with a few of Amazon’s rivals. Alternatively, Amazon is still partnered with one of FedEx’s biggest rivals, UPS.
In its own statement, Amazon countered with an assertion that it is “constantly innovating to improve the carrier experience and sometimes that means reevaluating our carrier relationships.” Over the years, Amazon has expanded its delivery network to include planes, trucks, vans, and additional fleet personnel that FedEx most likely viewed as a “potential long-term threat,” according to Reuters.
As Amazon continues to construct its own delivery network, will the e-tailer ultimately terminate its partnerships with other courier services to fulfill its one-stop-shop status? Deli Market News will deliver the latest updates.