FedEx also no longer provides road transport for Amazon in the United States. Earlier, the air freight contract FedEx had with the e-commerce giant already stopped.
FedEx is the first of the three major carriers (besides FedEx, Amazon worked with UPS and USPS) to stop delivering Amazon's parcels. The reason behind the break appears to be Amazon's development of its own delivery network. Where the Seattle-based company was first a customer, it increasingly emerged as a competitor to FedEx. With its own planes, trucks and vans, Amazon was able to command increasingly favourable delivery rates from carriers.
Speaking to Reuters, FedEx said it wanted to serve a broader e-commerce market. In June, when its air freight contract with Amazon expired, it made the same statement. "FedEx has built the network and capacity to serve thousands of e-commerce retailers. We are excited about the future of e-commerce and our leading role in it."
For FedEx's sales, the breach does not seem to have a major impact. Amazon accounted for just 1.3 per cent of the carrier's revenue.
