FedEx revealed a change in its relationship with Amazon on Friday, announcing that the company will not be renewing its Express U.S. domestic contract with the online retail giant.
The delivery company will be directing its “focus on serving the broader e-commerce market,” FedEx said in a statement Opens a New Window. .
The company pointed out that there’s an anticipated growth for e-commerce in the coming years, saying the daily number of packages in the U.S. is anticipated to rise substantially.
MORE FROM FOXBUSINESS.COM…
BEIJING TARGETS FEDEX AS US-CHINA TRADE WAR ESCALATES Opens a New Window.
FEDEX GROUND SAYS THEY’LL DELIVER 7 DAYS A WEEK ALL YEAR IN 2020 Opens a New Window.
“There is significant demand and opportunity for growth in e-commerce which is expected to grow from 50 million to 100 million packages a day in the U.S. by 2026,” the company said. “FedEx has already built out the network and capacity to serve thousands of retailers in the e-commerce space. We are excited about the future of e-commerce and our role as a leader in it.”
FedEx’s decision to part ways with Amazon in this capacity will not have an effect on international service, it said. It will also not affect “any existing contracts between Amazon.com and other FedEx business units.”
The contract, which is for air shipment of packages for Amazon in the U.S., is set to expire on June 30, according to The Associated Press.
The company also noted that Amazon isn’t their “largest customer” saying that during 2018, less than 1.3 percent of FedEx’s all-in profits came from them…..Read More>>>