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

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Updated 15 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 1 p.m. ET: 33,443,701 — Total deaths: 1,003,337 — Total recoveries: 23,200,183Map.
  2. U.S.: Total confirmed cases as of 1 p.m. ET: 7,159,222 — Total deaths: 205,345 — Total recoveries: 2,794,608 — Total tests: 102,342,416Map.
  3. Health: Americans won't take Trump's word on the vaccine, Axios-Ipsos poll finds.
  4. States: NYC's coronavirus positivity rate spikes to highest since June.
  5. Sports: Tennessee Titans close facility amid NFL's first coronavirus outbreak.
  6. World: U.K. beats previous record for new coronavirus cases.

NYC's coronavirus positivity rate spikes to highest since June

New York Mayor Bill de Blasio. Photo: Noam Galai/Getty Images

New York City's coronavirus positivity rate has ticked up to 3.25%, its highest since June, Mayor Bill de Blasio said at a news conference on Tuesday.

Why it matters: The jump — from 1.93% on Monday — came on the first day that public elementary classrooms reopened in the city after months of closures, but guidelines state that all public schools will have to shut if the citywide seven-day positivity rate stays above 3%.

Dan Primack, author of Pro Rata
2 hours ago - Economy & Business

AppHarvest is going public

Illustration: Sarah Grillo/Axios

AppHarvest, a Morehead, Ky.-based developer of large-scale tomato greenhouses, is going public via a reverse merger with a SPAC called Novus Capital (Nasdaq: NOVSU). The company would have an initial market value of around $1 billion.

Why it's a BFD: This is about to be a "unicorn" based in one of America's poorest congressional districts. AppHarvest CEO Jonathan Webb tells Axios that the company will employ around 350 people in Morehead by year-end, and that its location allows its product to reach 75% of the continental U.S. within a one-day drive.