FedEx Express is not Renewing Contract with Amazon

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​As general information to our clients and readers, FedEx Express is not renewing their contract with Amazon as tensions have been heightening between the two companies. Here are a few facts we found important regarding this future contact change, which will end on June 30th: 

• FedEx Express is "used for air transportation of packages and is not used for last-mile, ground deliveries" (Amazon loses contract with FedEx Express as it builds out competing delivery network, The Verge, 7 June 2019)
• UPS handles most of the two-day Amazon Prime deliveries and other FedEx contracts are still in place
• FedEx notes they have decided not to renew the contract because they want to focus on the larger e-commerce market, including shipments for other retailers
• According to FedEx, Amazon accounts for less than 1.3% of FedEx's total revenue
• Amazon is likely interested in managing each part of their logistics chain "from the warehouses that store [Amazon's] products to the planes, cargo ships, and delivery trucks that move [Amazon's] products around the world" (The Verge)

We are interested to see what happens in the future with both companies-- from Amazon's logistics chain to FedEx's revenue and growth. 

Other sources: FedEx opt out of Express contract with Amazon may be a good thing, analysts say, MarketWatch, 11 June 2019; FedEx declines to renew Amazon's U.S. air-delivery contract, The Washington Post, 7 June 2019; FedEx Express will not renew contract with Amazon, Supply Chain Digital, 10 June 2019