FedEx cuts express shipping contract with Amazon
FedEx announced on Friday it will not be renewing its domestic shipment contract for express shipping with Amazon, the Washington Post reports.
The big picture, Axios' Erica Pandey writes is that the company's decision to cut ties with Amazon comes as the e-commerce giant is quickly building its own logistics capabilities. Amazon, which used to be just a customer for big shippers like UPS and FedEx, is emerging as a competitor and may soon start taking market share.
- Amazon accounted for less than 1.3% of FedEx’s revenue last year — or approximately $850 million to $900 million, according to an estimate from Sanford C. Bernstein & Co. analyst David Vernon
- FedEx said it's not worried about Amazon fleshing out its own shipment system, but FedEx and UPS stocks have suffered since the tech giant started developing new logistics initiatives, per the Post.