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Amazon loses contract with FedEx amid competition

IANS  |  San Francisco 

Amid increasing competition, global company has decided not to renew its air shipping contract with giant

Amazon's Express contract is in question, which according to is used for of packages and is not used for last-mile and ground deliveries, The Verge reported on Friday.

"has made the strategic decision to not renew the US domestic contract with com as we focus on serving the broader market," Carl Quintanilla, tweeted a screenshot of FedEx's statement.

"The decision does not impact any existing contracts between Amazon and other FedEx business units or relating to international services," the statement added.

Amazon is not FedEx's largest customer and only 1.3 per cent of the total revenue generated by the global company in 2018 was attributed to

However, the decision did not really come as a surprise to Amazon, the report said.

The company has invested years into building its own to cut down on logistics costs.

Currently, Amazon oversees a massive warehouse, air hub, and in addition to its growing network of Flex personal delivery drivers, which are employed using an Uber-like contract model.

"We respect FedEx's decision and thank them for their role serving Amazon customers over the years," the report quoted an Amazon as saying.

Since FedEx has refused to Amazon parcels via air, it remains unclear how Amazon would be able to keep up with its recently-introduced one-day delivery program for members in the US.



(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Sat, June 08 2019. 14:12 IST