FedEx cuts ties with Amazon in sign of new rivalry

FedEx severs ties with Amazon as online giant builds its own delivery fleet

FedEx's retreat from Amazon could put some pressure on the tech giant at a time when it is relying on third-party partners to help expand delivery operations.

FedEx will effectively end its ground-delivery contract with Amazon at the end of August, according to sources.

The move by the USA package delivery company comes two months after it decided not to renew its contract with Amazon for US cargo delivery through its plane-based express service.

Meanwhile, FedEx Ground is working to wring out more residential profit by shifting the delivery of almost 2 million SmartPost packages from U.S. Postal Service mail carriers to its own drivers.

FedEx Corp. seems to have finally realized that it's futile to label Inc.'s delivery aspirations as a "fantastical" threat.

In recent months, FedEx has made it clear that it views Amazon as a competitor rather than a partner. Last year, Amazon accounted for 1.3 per cent of FedEx's total revenue. By using its reams of customer and geographic data, Amazon can choose to handle the shipping of packages going to densely populated areas, which is more efficient than making deliveries to rural locations.

Amazon made up about 1.3% of FedEx's sales past year.

Amazon in a statement said it is "constantly innovating to improve the carrier experience and sometimes that means reevaluating our carrier relationships". The Seattle-based company began laying the groundwork for that business after the 2013 holiday season, when an uptick in sales swamped the UPS and FedEx networks and caused delivery delays. This follows a June announcement that FedEx would cease US air-delivery services for Amazon.

Amazon has been slapping its smile logo on trucks and planes to deliver goods directly to customers.

FedEx can't give up on the e-commerce game entirely, though.

Some of the ground packages that FedEx handled for Amazon will migrate to UPS, said David Ross, an analyst with Stifel Financial. 'We don't see them as a peer competitor at this point in time.

"I am baffled", said Satish Jindel, the founder of ShipMatrix, which provides technology to the shipping industry, and a former employee of a startup delivery company that later became FedEx's ground unit.

Analysts said FedEx would still have a role in moving some Amazon packages, but it would be an even smaller part of its business.

Related News:

Most liked

NFL WR Calls Out His Team’s Owner For Supporting President Trump
No way I'm paying all that money towards that monster or anyone who supports him", one Facebook user wrote on Equinox's page. Ross is a passive investor and is not involved in the management of either business", it added .

China continues oil imports from Iran to show independence from United States sanctions
Official data from the government's Energy Information Administration (EIA) is due on Wednesday. Brent crude futures LCOc1 were down $2.17, or 3.7%, at $56.77 a barrel by 9:44 a.m.

USA hopes for North Korea nuclear talks despite missile tests
Trump's rhetoric also puts South Korean President Moon Jae-in in a tough spot, Oba said. But the mood has soured, with North Korea warning that plans for U.S.

Redmi Note 8, 64MP & 100MP camera phones: What is Xiaomi up to?
A 64-megapixel camera Earlier this year, Redmi announced that it was working on a new prototype with a 64-megapixel camera. The phonemaker posted the teaser image on its Facebook page, alongside the teaser of a Redmi phone with the 64MP camera.

Report find McDonald's paper straws can't be recycled like plastic ones
The McDonalds' spokesperson said: "The waste from our restaurants does not go to landfill but is used to generate energy". Since the introduction of paper straws, diners have been complaining that they "dissolve" in milkshakes and soft drinks.

'BH90210' Crew Celebrates Getting Back Together In Reboot's Opening Credits
But all of that changed when Luke Perry , an original 90210 star, passed away earlier this year. Yep! Take a look at the new intro below.

Stocks Erase an Early Loss and End Mixed Amid Trade War Fears
ET, the Dow Jones Industrial Average was down 243.45 points, or 0.94 per cent, at 25,786.07, easing from a near 600 point drop. The surprise rate cuts triggered a slide in bond yields around the world as investors scrambled for safety.

Leo Varadkar says vote on Irish unity would be 'divisive'
He insisted there will have to be discussions on citizens' rights, the financial settlement and the solution to the Irish border before there can even be a start on free trade arrangements.

USA Today HQ evacuated after report of man with weapon
The publication wrote in an online post that "alarms sounded at the building as police squad cars converged on the scene". A federal law enforcement source later told USA Today , however, that they found no threat or injured parties.

Gears 5 hardware revealed for Xbox
In addition, all previous Gears of War games (except Judgement) are included downloaded on the 1 TB limited edition Xbox One X . Gears 5 is an upcoming third-person shooter game from The Coalition studio which scheduled to release on 10 September .

Iran ‘favours talks despite Trump snub
At the height of the crisis, Trump called off air strikes against Iran at the last minute in June after its forces shot down a United States drone.

UK's data watchdog seeks more clarity from Facebook over Libra
Given there are already Libra cryptocurrency scams popping up on Facebook , we're not surprised to see some concerns continue to pop up around Libra .

New Borderlands 3 trailer features Amara the explosive Siren
Amara became a Vault Hunter, and thus she's now a nightmare for all Bandits and Psychos standing in her way. Borderlands 3 , the third numbered entry in the series launches for PC, PS4, and Xbox One September 13.

NBC 5 Forecast: Scattered showers and storms again today
There could be another line of storms Thursday morning, keeping our chance of strong storms in the "medium" category. This will set the stage for continuing chances for scattered showers and storms heading into the weekend as well.

Wantaway Manchester United striker trains with Belgian club for second day
Reports emerged earlier today that the Belgian has been handed a hefty fine by United for failing to report for training. The last thing Solskjaer wants is to have him back at Carrington and being a disruptive influence in the dressing room.