FedEx Express to Cut Ties with Amazon
Fedex announced earlier this month that it will not be renewing its
service contract with Amazon for Express packages when it ends
on 06/30/2019. There is not expected to be any disruption of service and
both parties seem to be taking the split amicably. FedEx claims they are
going to focus on other opportunities in the ever-growing
Ecommerce market. Some are skeptical, however, about their real reasons since
they are likely to notice a drop in revenue in a mostly fixed-cost service.
Whatever the reason, this will hasten the development of Amazon’s
personal logistics network which is still heavily reliant on other 3PLs.