Published On 08/09/2019
FedEx announced they won’t renew their ground-delivery contract with Amazon once it expires at the end of the month.
The signs were there. In June, FedEx ended their Express air shipments contract with the online retailer. Announcing that Amazon generated less than 2% of its total revenue, it’s no surprise FedEx decided to sever ties.
Primed to out-ship the competition. As Amazon moves to make free one-day shipping Prime standard, they’ve rolled out new initiatives and innovation to challenge FedEx and UPS like:
- Bolstering the Amazon Air fleet for express air-delivery
- Testing automated delivery via robots on the ground and drones in the air
- Incentive programs to help spark new delivery options
How does it affect my wallet?
What can Bezos do for you? Amazon’s Delivery Service Partnership Program presents an opportunity for entrepreneurs nationwide. Earlier this year they announced new incentives including $10,000 in startup funds and access to Amazon delivery vehicles.
- Partners can earn up to $300,000 in annual profit by expanding their fleet up to 40 vehicles.
Ex-ploring the field. Free of contractual obligations, FedEx looks to capitalize on thousands of retailers competing with Amazon in the e-commerce space with:
- Services extended to seven-days-a-week
- Extra Hours: a new program to ship packages faster
FedEx ground-delivery is cutting ties with Amazon. With Amazon bolstering in-house delivery services and FedEx prepared to test the waters without them, this may be the cleanest public breakup of 2019. This move alongside Amazon’s robo-tech signals a major shift in the industry.
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