FedEx drops ground-delivery contract with Amazon

Alia Paavola -

FedEx will end its ground-delivery contract with Amazon at the end of August, according to Bloomberg.

FedEx said it decided not to renew the contract when it expires at the end of the month. The decision comes just two months after FedEx announced it would end its domestic air-shipping deal with Amazon.

FedEx said the move will allow it to serve the broader e-commerce market. 

FedEx is reducing its dependence on Amazon as the e-commerce giant builds out a logistics network and adds next-day shipping capacity. Amazon is also starting a home-delivery service similar to that of FedEx. 

The latest FedEx decision will require Amazon to find a new way to handle delivery of millions of packages, The Wall Street Journal reports. 

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