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FedEx revealed a change in its relationship with Amazon on Friday, announcing that the company would not renew its domestic Express contract with the online retail giant.
The delivery company will focus on "its goal: serve the broader e-commerce market," FedEx said in a statement.
The company highlighted the expected growth of e-commerce in the coming years, saying that the number of daily parcels in the United States is expected to increase significantly.
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"There is significant demand and growth opportunities for e-commerce, which is expected to grow from 50 million to 100 million packets per day in the United States by 2026," the company said. "FedEx has already developed its network and ability to serve thousands of retailers in the e-commerce space. We are excited about the future of e-commerce and our leadership role in this area. "
FedEx's decision to separate from Amazon as such will have no effect on international service, she added. It will not affect "existing contracts between Amazon.com and other FedEx business units" either.
The contract, which deals with airmail parcels for Amazon in the United States, is due to expire on June 30, according to The Associated Press.
The company also noted that Amazon was not their "biggest customer," stating that in 2018, less than 1.3 percent of FedEx's global profits came from them.
| Teleprinter | security | Latest | Change | % Chg |
|---|---|---|---|---|
| FDX | FEDEX CORPORATION | 158.02 | +1.17 | + 0.75% |
| AMZN | AMAZON.COM INC. | 1,804.03 | +49.67 | + 2.83% |
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In a statement obtained by the Associated Press, Amazon only stated that it respected the FedEx decision and thanked the delivery company for having served Amazon's customers over the years.
Associated Press contributed to this report.
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