Logistics - FedEx To Amazon: Drop Dead
The logistics giant FedEx is cutting its last ties with Amazon as the world's largest online retailer builds its own delivery fleet to handle its deliveries in the continental US.
Two months ago, FedEx terminated its air delivery contract with Amazon. Now, FedEx will allow its ground ship contract expire at the end of the month and pursue more e-commerce deliveries from other companies such as Walmart and Target. The shipper says Amazon accounted for less than 1.3 percent of its total revenue in 2018.
"E-commerce is much bigger than any one company," a FedEx spokesperson said. "The average daily volume for small parcels in the US is expected to double - from 50 million to 100 million - by 2026."