Home Business & Finance Amazon Loses FedEx Express Contract

Amazon Loses FedEx Express Contract

Image: Flickr/Dave Winer

While Amazon remains to be the most dominant retailers in the world, the company still has to rely on logistic companies. While the company is working towards building its own logistics in the coming years, we might have to wait few more years before the company can get there. Recently, Amazon claimed that its drone delivery might come to the United States is just months away. However, in a recent turn of events, FedEx has decided to not renew its contract with the company.

You should note that the decision applies to the shipments which require air transportation of packages. As a result, FedEx will still carry on the normal ground-based delivery. As UPS is responsible for the two-day shipping, FedEx’s latest decision won’t impact Amazon.

While it might seem that the changes will impact FedEx, the company was quick to reveal that Amazon accounted to less than 1.3 percent of its annual revenue last year. As a result, it has decided to cancel the contract in order to focus on other parts of its logistics business.

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