FedEx is Terminating Business Ties with Amazon

FedEx announced on Wednesday that it is cutting the ties with Amazon, as the online retail giant builds its own separate delivery fleet, the company said. That announcement comes just after two months, when FedEx terminated its air delivery contract with the Amazon.

FedEx will pursue more e-commerce deliveries but from the other companies such as Target and Walmart. The company said that in a government filing of last month that the Amazon’s delivery business could be harming negatively their financial condition and results of operation. Because Amazon is expanding its own fleet of both the air-deliveries and ground transportation, by minimizing its reliance on UPS, the U.S. Postal Service and FedEx.

An analysts at Citi Research, Christian Wetherbee said in a note to clients, “This does not come as a surprise to us,” FedEx is now clearly trying to move away from its partnership with Amazon and they believe that it is using this move, as a selling point to win a new non-Amazon business.

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