SEATTLE, WA - As Amazon has quietly built out its own delivery network over the years, it has pushed its partnership with FedEx Corp to the wayside and instead become a major competitor. This has finally culminated in FedEx terminating its partnership with Amazon, according to a report by Reuters, after months of speculation of will-they/won’t-they. This move means the courier company will no longer participate in Amazon’s small-package ground delivery service.
“This change is consistent with our strategy to focus on the broader e-commerce market,” FedEx said in a statement. Reuters translated that the carrier company’s decision could be driven by plans to partner with a few of Amazon’s rivals. Alternatively, Amazon is still partnered with one of FedEx’s biggest rivals, UPS.
In its own statement, Amazon countered with an assertion that it is “constantly innovating to improve the carrier experience and sometimes that means reevaluating our carrier relationships.” Over the years, Amazon has expanded its delivery network to include planes, trucks, vans, and additional fleet personnel that FedEx most likely viewed as a “potential long-term threat,” according to Reuters.
As Amazon continues to construct its own delivery network, will the e-tailer ultimately terminate its partnerships with other courier services as a means of fulfilling its one-stop-shop status? AndNowUKnow will keep on reporting the latest in grocery news.
