FedEx pulls from US Amazon small package deliveries

FedEx pulls from US Amazon small package deliveries”

FedEx will stop delivering packages for Amazon on the ground in the US when the shipping company's contract expires at the end of the month, it announced yesterday.

This is an interesting move from FedEx and according to experts; it is a move that will allow the company to pick up more non-Amazon contracts. Amazon doesn't say how much of its packages flow through FedEx, but it's likely a much smaller amount compared to UPS and the U.S. Postal Service.

"This change is consistent with our strategy to focus on the broader e-commerce market", FedEx said in a statement as it looks to expand and serve companies that would include rivals of Amazon.

FedEx says it will no longer make ground deliveries for Amazon as the online shopping giant builds its own fleet and becomes more of a threat to delivery companies.

Meanwhile, FedEx Ground is working to wring out more residential profit by shifting the delivery of almost 2 million SmartPost packages from U.S. Postal Service mail carriers to its own drivers.

" Nonetheless, followed by FedEx's Wednesday's (August 7th) statement to suspend tie-up with Amazon's ground-based delivery service, shares of FedEx wrapped up the day down by 0.33 per cent to $160.66 per share, while shares of Inc. ended the day with a decent gain of 0.31 percent to settle down at $1,793.40". The e-retailer has grown its own fleet of air and ground transportation, giving it more control over how its packages are delivered.

Dave Clark, Amazon's senior vice president, operations, seemingly wasn't feeling the negativity one iota.

As Amazon continues to construct its own delivery network, will the e-tailer ultimately terminate its partnerships with other courier services as a means of fulfilling its one-stop-shop status?

"'What was a frenemy, they've now figured out is their competitor, ' Trip Miller, managing partner at Memphis-based Gullane Capital, tells them, referring to the FedEx relationship with Amazon", they add.

Meanwhile, "the Amazon announcement continues an eventful year for FedEx Ground". In May, the company revealed its plans to deliver on Sundays year-round and rely less on the U.S. Postal Service.

Like this



11 August 2019
Israeli forces attack Palestinian worshippers in Al-Aqsa
Al Jazeera speaks to Rami Khouri, professor of Journalism at the American University of Beirut, who joins us live from Beirut. In a statement, police said they had deployed forces at the site in anticipation of disturbances and "dispersed rioters".

11 August 2019
Destiny 2's Cross Save Feature Launches 21st August
Destiny 2 is transitioning to Steam on PC later this year, and a new trailer breaks down how easy the process will be for players. Basically, there is no mixing and matching of characters if you have different ones on PS4, PC, or Xbox One.

11 August 2019
Trump slams The Hunt movie where elites target 'deplorables'
Trump's attack on Hollywood comes days after the president blamed video games for gun violence in a White House address. What they're doing, with the form of motion pictures they're placing out, it is truly very harmful for our nation.

11 August 2019
YouTuber Marina Joyce Is Found 10 Days After She Went Missing
Despite denying the conspiracy theories, Marina actually credited her fans' concern as her reason for seeking help. Despite this, Joyce's boyfriend Brandon Mehmed promised "she is safe" in an Instagram post published on Friday.

11 August 2019
Gears 5 is Complete, Ready for September Launch
The well-known Rod Fergusson will also be present at the expected event, representing the software house now working on Gears 5 . Gears 5 will be available for all Xbox Game Pass subscribers on September 6, before its official retail launch on September 10.

11 August 2019
Anti-govt protests again erupt in Hong Kong over extradition bill
The protests have been condemned by the central government in Beijing , which has accused foreign powers of fueling unrest. Lam defended her government's handling of the protests in a phone call with Britain's foreign secretary, Dominic Raab.

11 August 2019
Miley Cyrus and Liam Hemsworth Break Up After Seven Months Of Marriage
A representative for the singer said Saturday the pair decided a break was best while they focus on "themselves and careers ". The singer has occasionally been pretty lax about wearing her ring throughout her engagement to Hemsworth and her marriage.

11 August 2019
Iran: 'Disastrous consequences' if Israel intervenes in Gulf
On Monday, the United Kingdom said it will form a joint maritime task-force with the U.S. to protect merchant vessels in the Gulf. Iranian Foreign Minister Mohammad Javad Zarif said Washington is anxious about being defeated by Tehran in the diplomatic arena.

11 August 2019
WhatsApp Likely Working On Boomerang-Like Feature - Expected To Rollout Quickly
The Boomerang feature will join the existing option of converting a video into a GIF if it is less than seven seconds in length. Boomerang feature on Instagram now allows users to endlessly loop a video backwards and forwards, nearly like a GIF.

11 August 2019
Javid not expecting recession 'at all' after GDP drops
That stockpiling boon helped the economy grow by 0.5 percent in the first quarter. But the figures appear to confirm dire predictions about Brexit.