FedEx has announced it will not be renewing its contract for ground freight with Amazon. This decision, which takes effect in September, comes just two months after the company ended its air freight contract with Amazon. These contracts make up approximately 1.3% of FedEx's total sales. Despite the loss of these sales, it makes sense that FedEx would want to distance themselves from Amazon. In recent years Amazon has begun bringing their shipping and delivery in-house, placing them in direct competition with companies like FedEx. As a result, Amazon has been cutting ties with various shipping giants like UPS, FedEx, and United States Postal Service.
In order to strengthen their company, FedEx is working to better improve its ties with Walmart, Amazon's biggest competitor. FedEx is also working to improve its services and offerings by expanding its shipping services to include larger delivery windows and delivery on weekends. This split between FedEx and Amazon is yet another example of the growing distance between Amazon and the rest of the industry.