FedEx Drops Ground Delivery for Amazon, Can UPS Be Far Behind?
The first shoe FedEx (NYSE: FDX) dropped over Amazon.com's (NASDAQ: AMZN) ambition to become a full-fledged transportation and logistics carrier was not renewing its Express contract with the e-commerce giant for package delivery. Now the next shoe has fallen: FedEx said it will not renew its contract for ground delivery for Amazon.
Image source: FedEx.
FedEx maintains the changing relationship "is consistent with our strategy to focus on the broader eCommerce market" and recently acknowledged in its annual Securities and Exchange Commission filing that it now considers Amazon to be a competitor. It's clear the last shoe to drop will be FedEx not renewing its contract for international package delivery. At that point, the two will have completely severed their relationship.
Source Fool.com
