FedEx has slashed ties with Amazon by halting its ground services in a move stemming from FedEx’s ambitions to be an Amazon competitor after building its own shipping network.
FedEx said in a statement that it will not be renewing its contract with Amazon, stating: “This change is consistent with our strategy to focus on the broader e-commerce market.”
The courier will still have a contract with Amazon for international deliveries.
FedEx made the move after Amazon looked to increase next-day air capacity with leased jets.
Amazon said in a statement of their own: “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.”
While the move won’t damage Amazon, who can fall back on the U.S. Postal Service, it is a clear showing from FedEx that they now wish to be seen as Amazon rival rather than cooperator.
Experts have even opined that the move could be a way for FedEx to tempt US giant Walmart into closer ties.
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