FedEx to end Amazon contract for FedEx Express plane service


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FedEx to end Amazon contract for FedEx Express plane service

On Friday, the 7th of June 2019, the US-based multinational courier service, FedEx Corp., headquartered in Memphis, Tennessee, had issued a statement saying that the company had decided not to renew its contract with Amazon for US cargo delivery through its FedEx Express service, a service that sends packages by airways, pointing towards a move that orchestrated a broader attempt of the Amazon.com Inc.

moving towards service in-house. No. 1 US e-commerce retailer, Amazon.com Inc. had long been building its own network of delivery planes, vans and trucks, a move which could pose long-term challenge for to FedEx alongside other US rivals, United Parcel Service Inc, both of which had been considering Amazon as a customer.

Followed by the reveal of the statement, the Memphis-based US courier service had also added that the decision was a strategic overhaul dedicated to allow the company to center its focus more on the broader e-commerce market, while FedEx had also forecasted that its market on US soil would be doubled up by 2026.

Addressing that Amazon.com Inc. had a better deal with FedEx rival UPS (United Parcel Service), a director of consulting service at logistics Trends and Insights, Dean Maciuba said, “Amazon had a better rate with UPS so it made no sense for them to use FedEx”.