FedEx Ends Express Delivery Agreement with Amazon – TechCrunch



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FedEx will not renew its contract with Amazon for the express delivery of packages from the e-commerce giant in the United States.

FedEx, which made the announcement Friday, said in a statement that the change would not affect other existing contracts with Amazon or international services. FedEx Express only covers air services. FedEx will continue to serve as a carrier to Amazon for last mile deliveries.

In a statement, Amazon said they respect FedEx's decision and thanked her for her "role in serving Amazon's customers over the years".

FedEx has tempered the information stating that Amazon is not its biggest customer. The percentage of FedEx's total revenue attributable to Amazon.com represented less than 1.3 percent of FedEx's total revenue for the 12-month period ended December 31, 2018, according to FedEx.

This decision follows the explosion of electronic commerce, a trend that should continue. FedEx estimates that e-commerce is expected to grow from 50 million to 100 million packages per day in the United States by 2026.

This growth, along with the logistical gymnastics needed to win, not lose, money to seize this opportunity, has prompted FedEx, Amazon and others to look for efficiencies. in their activities, as well as developing and deploying new technologies.

For example, FedEx unveiled in February an autonomous delivery device called SameDay Bot. The bot, which will be tested this summer in some markets, including Memphis, FedEx's hometown, is being developed in collaboration with DEKA Development & Research Corp. and its founder, Dean Kamen, who invented the Segway and iBot wheelchairs.

The initial test will involve deliveries between selected FedEx Office sites, the company said. Eventually, the FedEx bot will complement the FedEx SameDay City service, which operates in 32 markets and 1,900 cities.

Amazon made its own decisions, ranging from investing in the Rivian electric vehicle business and developing an all-electric delivery drone to acquiring the urban dispatch robot startup Dispatch and the robotics startup for warehouses, Canvas Technology.

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