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As Amazon Builds Its Own Delivery Service, It Loses FedEx Contract

Photo Credit: BriYYZ via Flickr cc

FedEx has said it will not renew one of its shipping contracts with Amazon, given that the competition between the two companies is growing. The FedEx Express contract covered Amazon’s air transportation of packages, not last-mile, ground deliveries. Most of Amazon’s two-day deliveries are handled by UPS. Other FedEx contracts are still intact.

Still, FedEx’s decision not to renew its contract with Amazon is evidence of escalating tensions between the US domestic shipping industry and the country’s largest and most dominant e-commerce company.

Read more at The Verge.