Amazon Ends FedEx Contracts
Amazon Ends FedEx Contracts refers to the 2019 split between Amazon and FedEx, when FedEx declined to renew its US Express air contract with Amazon in June and its Ground contract in August.
What happened and why it matters
The FedEx split signaled that Amazon had become a carrier in its own right, and it changed how both companies compete for ecommerce parcels today. In June 2019 FedEx chose not to renew its US air contract with Amazon, and in August it let the ground delivery contract expire, saying it would focus on the broader ecommerce market. Amazon then made up only about 1.3% of FedEx revenue, while Amazon was rapidly expanding its own planes, vans, and sort centers. For sellers, the shift means Amazon now controls more of its own delivery capacity, so FBA performance and carrier options outside Amazon have diverged.