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Poor FedEx Cuts Amazon From Air Cargo Services

It has been expected that soon many logistics player will stop working for Amazon. FedEx has drawn the first sword, cutting Amazon off from its air cargo services. Amazon has built a huge logistics operations, and is seen as a major competitor to the likes of FedEx, UPS and DHL.

Amazon packages will take their last US flight on FedEx planes later this month.

FedEx (FDX) announced Friday that it isn't renewing its US contract with Amazon to transport packages on FedEx Express. The move comes as FedEx and Amazon compete more directly in delivery logistics.
Amazon is under increased pressure to deliver packages quickly. In April, Amazon said it planned to begin delivering packages to Prime customers in one day rather than two. FedEx followed up in May with plans to deliver seven days a week.
FedEx said in a press release it plans to focus on serving the broader e-commerce market with continued partnerships with brands such as Walmart and Target. The company said Amazon accounted for less than 1.3% of its total revenue in 2018