One of the largest delivery service providers, FedEx, has announced that it is going to end its contract with its longtime partner, and the biggest retail company, Amazon. FedEx has been providing its services to the biggest companies in the world, and with Amazon, it has been working for the past many years. But now it wants to end the relationship with the latter.
For now, the company will be ending its operations for its air shipment services of packages for Amazon within the United States effective from July 1st, as the current contract between the two will be ending on June 30, and it does not have any plans for the renewal of the contract.
“FedEx has made the strategic decision to not renew the FedEx Express US domestic contract with Amazon.com, Inc., as we focus on serving the broader e-commerce market. This decision does not impact any existing contracts between Amazon.com and other FedEx business units or relating to international services,” said the delivery company in a statement released on Twitter.
Recently, Amazon announced its own in-house delivery service, which seems the strongest reason for FedEx pulling out its operations with Amazon. In fact, Amazon has steadily got its hands on all required things to be a delivery service provider, like warehouses, delivery planes, cargo trucks, etc., to fulfil its free shipping promise to its customers.
Reacting to the decision, Amazon said, “We respect FedEx’s decision and thank them for their role serving Amazon customers over the years.”
Though Amazon is partnered with UPS for its two-day delivery service, FedEx took care of the other services and for the ground level deliveries, it will continue to serve Amazon as before. The big client base of FedEx, other than Amazon also includes Target, Walgreens and Walmart, etc., Walmart being particularly the biggest business provider for the former. FedEx has said that with this decision, it will be able to serve them better.
Yashica is a Software Engineer turned Content Writer, who loves to write on social causes and expertise in writing technical stuff. She loves to watch movies and explore new places. She believes that you need to live once before you die. So experimenting with her life and career choices, she is trying to live her life to the fullest.