FedEx Corp says it wants to end the ground delivery system of it’s for Amazon. According to the sources FedEx says delivering packages through its ground network, is splitting its ties with one of the world’s biggest shippers.
Also, that it is better off filling its trucks with other customer goods. On Wednesday the delivery giant says they have decided not to renew the contract. However, FedEx said in the month of June of ending its air-shipping contract with Amazon in the US.
Although, mentioned to continue to handle ground-deliveries. International shipments would still be handled by FedEx.
These moves suggest the tensions surging between the two longtime partners. The e-commerce giants are building their own networks across the world.
This includes leasing cargo planes, buying trucks as well as funding local delivery drivers. While FedEx walks away from being the largest e-commerce network in the US.
FedEx at the same time is positioning itself as a go-to-carrier for the Target Corp. as well as Walmart Inc. also the world of retailers competing with Amazon.
According to the sources, FedEx said in a statement “This change is consistent with our strategy to focus on the broader e-commerce market.”
This decision from FedEx puts Amazon in a place to find its own new way to handle millions of packages. As well as at the same time Amazon is looking to speed many of its home deliveries to one-day shipments.
Now, Amazon will redistribute its packages among its other carriers as well as its own network. According to a person familiar with the matter, Amazon does not anticipate any disruptions to its new Prime One-day shipping speeds.
Amazon’s senior vice president Mr. Dave Clark tweeted, “Nothing but respect for FedEx, but they were a very small piece of our network and vice-versa.”