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FedEx cuts Amazon ground delivery

by Hannah Harris
Posted 8/08/19, 01:39 pm

FedEx will soon stop dropping off your Amazon Prime packages. The shipping giant announced Wednesday it will instead focus on working with retailers such as Target, Walgreens, and Walmart. FedEx’s ground contract with Amazon is set to expire, and it announced its was ending air deliveries for the online retailer two months ago.

Won’t this move hurt FedEx? Amazon is developing its own delivery fleet of vans, trucks, jets, drones, and robots, but FedEx Chairman and CEO Fred Smith said in December he didn’t see Amazon as a competitor. The retailer only made up about 1.3 percent of FedEx’s sales in 2018. But in a government filing last month, FedEx warned for the first time that Amazon’s fledgling delivery service could “negatively impact our financial condition and results of operations.”


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Hannah Harris

Hannah is a graduate of World Journalism Institute and a WORLD intern.

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