FedEx is reportedly severing shipping ties with Amazon as Jeff Bezos' company scales up its own logistics operation

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FedEx is reportedly severing shipping ties with Amazon as Jeff Bezos' company scales up its own logistics operation

FILE PHOTO: A FedEx delivery worker carries a package for a delivery in Wilmette, Illinois, October 27, 2015.     REUTERS/Jim Young/File Photo

Reuters

A FedEx delivery worker.

FedEx is ending its ground delivery contract with Amazon, Bloomberg News reported on Wednesday, citing a statement from the shipping service.

The move comes as Amazon works to scale up its own logistics and delivery services, including hiring its own fleet of full-time drivers to deliver packages to Prime customers.

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"This change is consistent with our strategy to focus on the broader e-commerce market," FedEx said in the statement to Bloomberg.

Amazon was responsible for just over 1% of FedEx's sales in 2018. Over the past year, FedEx's leadership has made it clear that it viewed Amazon as a competitive threat, and not a collaborative partner.

"[We] look at Amazon as a wonderful company and service and they're a good customer of ours," Smith said in a December earnings call. "We don't see them as a peer competitor at this point in time. For many reasons, we think it is doubtful that will be the case."

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This story is developing...

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