On Friday FedEX announced that it will not renew its U.S shipping contract with Amazon. Amazon is rapidly developing its own in-house delivery network to meet the growing need of timely deliveries as purchases roll in from Amazon Prime Members.
FedEx said in a statement that it was a “strategic decision” and that it does not affect another other existing contracts with Amazon including international shipping or orders that are still being processed for fulfillment.
The contract that FedEx is not renewing is specific to their air services, which means FedEx will continue to provide last mile delivery service for Amazon.
Amazon is ramping up its own delivery network to handle more orders with faster delivery times. This includes purchasing cargo planes and trucks as well as launching programs to streamline deliveries to customers.