FedEx Drops Amazon U.S. Express Contract Amid E-Commerce Boom
FedEx ends its U.S. express delivery contract with Amazon, a move that impacts only domestic air services. Both companies continue to invest heavily in autonomous delivery technologies as package volumes surge.
FedEx ends its U.S. express delivery contract with Amazon, a strategic shift that only affects domestic air services. The logistics company clarifies that this decision does not impact other existing contracts with Amazon or international services, and FedEx continues to handle last-mile deliveries for the retailer. Furthermore, FedEx reveals that Amazon accounts for less than 1.3% of its total revenue, minimizing the financial impact of this separation.
This split occurs as the e-commerce sector experiences massive growth, with FedEx estimating daily U.S. package volumes jumping from 50 million to 100 million by 2026. Such explosive demand forces logistics providers and retailers alike to seek new efficiencies and technological advancements to remain profitable. As a result, both companies aggressively pursue alternative delivery methods to handle the future workload.
FedEx pushes forward with its autonomous SameDay Bot, a device developed with Dean Kamen that undergoes testing this summer to complement its SameDay City service. Simultaneously, Amazon builds its own delivery network by investing in electric vehicle maker Rivian, developing delivery drones, and acquiring robotics startups like Canvas Technology. These parallel efforts highlight a broader industry race to automate and optimize the delivery process.