FedEx ends its Amazon ground logistics deal

We wrote last month about Amazon extending its logistics arm in the UK to include Shipping with Amazon. The increasing competition from Amazon itself is now causing its suppliers in the logistics market to back away, most notably FedEx.

The US logistics giant did not renew a FedEx Express deal to carry Amazon’s air freight a few months ago, and has now allowed the ground delivery side to expire as well.

This will not come as a surprise to Amazon, who will have foreseen this as an inevitable consequence of their entry to the last-mile market. From FedEx’s perspective, capturing the rest of the growth in last-mile thanks to ecommerce is a bigger priority than handling deliveries for the retail arm of Amazon, which is becoming a major competitor in the logistics space.