FedEx and Amazon have called it quits after FedEx decided this week to terminate its contract with Amazon.com for small-package ground deliveries. An article from Reuters stated, “The move by the U.S. package delivery company comes two months after it decided not to renew its contract with Amazon for U.S. cargo delivery through its plane-based express service.”
Dave Clark, Amazon’s senior vice president of operations said in a tweet on Wednesday, “Nothing but respect for FedEx but they were very small piece of our network and vice versa, we wish them nothing but the best (conscious uncoupling at its finest). We have great strategic partners who are part of our long term plan and we appreciate what they do for customers.”
Although it may seem like this could be a major shift in the e-commerce dynamic, Amazon was responsible for only 1.3% of FedEx’s sales in 2018. Most of the delivery fleets contracted with Amazon are part of the Amazon Delivery Service Partner (DSP) program.