Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Denver news in your inbox
Catch up on the most important stories affecting your hometown with Axios Denver
Des Moines news in your inbox
Catch up on the most important stories affecting your hometown with Axios Des Moines
Minneapolis-St. Paul news in your inbox
Catch up on the most important stories affecting your hometown with Axios Twin Cities
Tampa Bay news in your inbox
Catch up on the most important stories affecting your hometown with Axios Tampa Bay
Charlotte news in your inbox
Catch up on the most important stories affecting your hometown with Axios Charlotte
A FedEx warehouse in Florida. Photo: Joe Raedle/Getty Images
FedEx said Wednesday that it will not renew its U.S. ground delivery contract with Amazon, Bloomberg first reported.
The big picture: The shipping giant's decision, coupled with its move just weeks ago to end its contract to transport Amazon packages by air, comes as Amazon transforms from a customer to a competitor. The e-commerce company is adding trucks, planes, employees and even an air hub to strengthen its logistics arm — directly targeting the big U.S. shippers.
Context: After months of dismissing Amazon as a potential threat, FedEx labeled the tech company as a competitor in its most recent 10-K report, stating that its continued expansion into shipping and logistics "will reduce our revenue and could negatively impact our financial condition and results of operations."
By the numbers:
- As we've reported, Amazon has surpassed all of its logistics partners to become its own biggest shipper, according to data from Rakuten Intelligence. Amazon now ships around 47% of its own packages. FedEx ships just under 2%.
- As e-commerce continues to grow in the U.S. and around the world, FedEx still has scores of customers in the industry. Amazon currently makes up only about 1% of FedEx's revenue.
"FedEx has been a great partner over the years and we appreciate all their work delivering packages to our customers," an Amazon spokesperson tells Axios.
Go deeper: Amazon breaks into the shipping war