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Amazon is tapping FedEx to handle some of its large package deliveries
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This comes weeks after UPS said it was delivering less packages from Amazon and slashing 20,000 jobs
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FedEx said the multi-year agreement covers residential delivery of select large packages for Amazon
Amazon is tapping FedEx to handle part of its large package deliveries. This comes weeks after UPS said it was delivering fewer packages from Amazon and slashing 20,000 jobs.
FedEx shares surged on Monday even more than rallying Wall Street benchmarks, finishing up 7%.
FedEx said the multi-year agreement covers residential delivery of select large packages for Amazon.
The deal with FedEx gives Amazon “cost favorability” compared with delivery rival UPS, according to a Business Insider report.
The agreement will not replace UPS, Amazon said as FedEx will join its third-party partners, including UPS and the USPS, and work alongside its own last-mile delivery network.
In a statement,, FedEx called it a “mutually beneficial, multi-year agreement.”
The deal may signal a thaw in relations between FedEx and Amazon. The companies cut residential delivery ties in 2019 as Amazon was building its sprawling network of delivery services.
UPS said in January it planned to reduce shipment volumes for Amazon, its largest customer, by more than 50% by the second half of 2026 to focus on fewer, but more profitable deliveries.
UPS said it would slash 20,000 jobs and shut 73 facilities as a part of its planned reduction in Amazon deliveries, as well as cost-cutting and efficiency projects under a major restructuring.
FedEx and UPS have engaged in a fierce battle for market share over the last five years, often poaching whole or partial customer accounts from the other
READ: FedEx launches digital tool to simplify import process
