FedEx Express to Cut Ties With Amazon

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FedEx Express
  • FedEx will not renew its Express domestic contract with Amazon. Instead, it will focus on “serving the larger e-commerce market”. The contract with Amazon expires on June 30 and only impacts air services.
  • FedEx pointed to “significant demand and opportunity for growth in e-commerce” and stated that 1.3% of FedEx’s total revenue comes from Amazon.
  • By breaking ties with Amazon for air shipments, FedEx seems to be in a position of disinterest in offering its own airline network. FedEx declined to comment beyond his statement.
  • Amazon might take a 40% stake in Atlas Air Worldwide Holdings and ATSG. It has also expanded its aircraft fleets and cargo hubs.
  • The severing of ties does not affect existing contracts or Amazon shipments through other FedEx business units, such as FedEx Ground, last-mile deliveries or international shipments.
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