FedEx Corp. has announced it will end its U.S. air-delivery contract with Amazon.com Inc. in a bold move to focus on “serving the broader e-commerce market.” Amazon represented less than 1.3 percent of FedEx’s sales last year, according to a statement Friday by the delivery giant. The decision means that FedEx’s domestic air service will walk away from the dominant e-commerce company at a time when the rise of online shopping is fuelling record demand for parcel deliveries. Amazon’s emergence as a logistics giant has posed a costly challenge to FedEx and United Parcel Service Inc. by stepping up pressure for faster deliveries. There seems to be a feeling that Amazon was low-balling FedEx in a field where costs can explode. FreightWaves chat.
