Logistics - FedEx and Amazon Break Up
There's a major disruption going on in the US Logistics scene as FedEx announced it is dumping its US package-delivery contract with the online mega retailer Amazon.
FedEx will continue to deliver to Amazon internationally, but Amazon is increasingly setting its sites on taking on the logistics sector on its own. The company is using its Amazon Air service more and more, and is on the verge of rolling out drone technology for package delivery. That would mean changes for FedEx, which has dominated the US package delivery sector with its rival UPS.
But despite Amazon's expanding influence, it's not the biggest money-maker for FedEx: Amazon accounts for less than 1.3 percent of FedEx's revenue.
"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 US by 2026. 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 said in a statement.