FedEx Ends Ground Delivery Contract with Amazon
FedEx is cutting another tie with online retailer Amazon. The company announced it would end delivering ground parcels at the end of this month when its contract expires.
The news was first reported by Bloomberg early Wednesday morning.
This report follows the June announcement by FedEx to stop Express deliveries for Amazon in the US as the logistics giant pivots away from Amazon.
READ MORE: FedEx Express to stop delivering Amazon packages in the US
“This change is consistent with our strategy to focus on the broader e-commerce market, which the recent announcements related to our FedEx Ground network have us positioned extraordinarily well to do.”
FedEx spokesperson
Amazon will still use FedEx for international shipments
FedEx will continue to handle international deliveries for Amazon, but those days could be numbered too.
Amazon is building a Prime Air hub at Cincinnati/Northern Kentucky where it currently shares logistics space with DHL.
READ MORE: Amazon to expand Prime Air Operations at CVG air hub
“We are constantly innovating to improve the carrier experience and sometimes that means reevaluating our carrier relationships. FedEx has been a great partner over the years and we appreciate all their work delivering packages to our customers.”
Amazon spokesperson to CNBC
The decision by FedEx is likely due to Amazon’s push to enter the US logistics space.
Amazon continues to grow its delivery network of independently owned, but Amazon-branded, delivery trucks in the US.
Many observers believe the company could become a significant competitor to FedEx, UPS, and USPS as it could make the delivery network available to non-Amazon associated merchants.
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Richard Meldner
Richard is co-founder of eSeller365. He has over 17 years of experience on eBay which includes tens of thousands of sales to buyers in over 100 countries and even has experience with eBay’s VeRO program enforcing intellectual property rights for a former employer. And for about two years Richard sold products on Amazon using Amazon FBA in the US.
To “relax” from the daily business grind, for a few weekends a year, he also works for IMSA as a professional race official.
Will Amazon want to be delivering 3rd party sales channels items? If they are not part of the Amazon ecosystem it would be hard to integrate and data measure thus putting resources into delivering products which they cannot manage.
“Amazon continues to grow its delivery network of independently owned, but Amazon-branded, delivery trucks in the US”
That is what they are doing here in the UK also. One day earlier this year I looked out my window and saw the Amazon logistics deliver to 3 out of 5 houses in a row – it meant me think how big they have become and how so many households use them.