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FedEx will no longer provide Amazon Express services in the U.S.

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As Amazon continues to expand its internal distribution network, FedEx will no longer provide courier services for the e-commerce giant's packages. FedEx announced on Friday that it has decided not to renew its American Express shipping contract with Amazon. The company said in a statement that this was a "strategic decision" and that the change would not affect other existing contracts with Amazon, including international shipping.

Amazon's contract with FedEx affects only air services, which means that FedEx will continue to be the carrier and last-mile delivery partner. FedEx added that Amazon is not a big customer and only accounted for about 1.3% of its total revenue in 2018. Affected by this news, FedEx's stock price fell in the short term, while Amazon's stock price did not fluctuate.

An Amazon representative said in an emailed statement, "We respect FedEx's decision and thank them for their service to Amazon customers over the years." This change comes as Amazon is actively investing in its own internal shipping and distribution. Service Network. In its 2018 annual financial report, Amazon listed "transport and logistics services" as a competitor for the first time.

FedEx often downplays competitive risks from Amazon. FedEx executive vice president Rajesh Subramaniam said during a conference call with analysts in September that Amazon's new express service "should not be confused with competing with FedEx." QQ Consulting
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