FedEx to End Deliveries for Amazon


◊ FedEx Financial News – Stock Market News Today ◊


News Fedex and Amazon

FedEx Corp. said it was ending its contract to deliver Amazon.com Inc. packages through its ground network, essentially severing ties with one of the world’s biggest shippers.

The delivery giant said Wednesday it decided not to renew the contract when it expires at the end of August. In June, FedEx said it was ending its air-shipping contract with Amazon in the U.S. but would continue to handle ground deliveries. It would still handle international shipments.


Start Trading Now or Try a FREE Demo Account


The moves are evidence of escalating tensions between the longtime partners as the e-commerce giant builds out its own delivery services, including leasing cargo planes, buying trucks and funding local delivery drivers.

“This change is consistent with our strategy to focus on the broader e-commerce market, which the recent announcements related to our FedEx Ground network have us positioned extraordinarily well to do,” FedEx said.

FedEx’s decision will require Amazon to find a new way to handle millions of packages ahead of the critical holiday shopping season at the same time Amazon is looking to speed home deliveries.

The once-staid delivery business has been upended in recent years as consumers buy everything from toilet paper to trampolines online, causing a surge in e-commerce shipments. FedEx and rival United Parcel Service Inc. have invested billions of dollars to handle the increased volumes. FedEx recently said it would expand to seven-day home delivery.


Start Trading Now or Try a FREE Demo Account


Although Amazon ships millions of packages a day, it spreads the orders among FedEx, UPS and the U.S. Postal Service, as well as its own growing delivery operations. FedEx has said Amazon represented 1.3% of FedEx’s total revenue in 2018, or less than $1 billion.



FedEx Corporation Company Profile: FedEx Corporation (FedEx) provides a portfolio of transportation, e-commerce and business services through companies competing collectively, operating independently and managed collaboratively, under the FedEx brand. The Company’s segments include FedEx Express, TNT Express, FedEx Ground, FedEx Freight and FedEx Services.

The FedEx Express segment offers a range of the United States domestic and international shipping services for delivery of packages and freight. TNT Express segment collects, transports and delivers documents, parcels and freight on a day-definite or time-definite basis.

The FedEx Ground segment provides business and residential money-back guaranteed ground package delivery services. The FedEx Freight segment offers less-than-truckload (LTL) freight services. The FedEx Services segment provides its other companies with sales, marketing, information technology, communications, customer service and other back-office support.



ECONOMIC INDICATORS ›


INSIGHTS ›



 



Categories: News, Stock Markets

Tags: , , , , , , , , ,

7 replies

Trackbacks

  1. China’s Exports Unexpectedly Rise in July – Stock Market News Today
  2. Kraft Heinz Shares Fall 15 Percent – Stock Market News Today
  3. Top 5 Market News on Friday – Stock Market News Today
  4. Stock Market News on Friday – Stock Market News Today
  5. Stock Market News {Friday} – Stock Market News Today
  6. US Removes Some Items From China Tariff List – Stock Market News Today
  7. Best Airline ETFs To Buy Today {2019} – Stock Market News Today

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: