FedEx is Ending Ground Delivery for Amazon

It was only a few weeks ago that FedEx announced it would not be renewing its contract with Amazon to provide FedEx Express Air services. That announcement was seen as a possible indication of the fraying relationship between Amazon and carriers - a potential harbinger of Amazon beginning to take on its own deliveries in earnest. It now seems that things are moving faster than expected. This morning, FedEx announced that it would also be ending its contract with Amazon for ground shipping, essentially cutting the final cord of the relationship between the two companies.

Amazon's Plans are More Obvious Than Ever

These most recent actions by FedEx are further proof of the now out-in-the-open conflict between the two former partners, as Amazon continues to develop its own delivery services. For the last half-decade, Amazon has gradually taken over their entire supply chain, slowly becoming their own carrier - phasing out relationships with third-parties like FedEx.Some the actions taken by Amazon include leasing its own fleet of planes, purchasing a fleet of trucks, and launching programs that enlist local gig workers for last-mile delivery.

Will Amazon Be Able to Deliver During The Holiday Season?

The recent decisions by FedEx - essentially end the relationship between the two companies - means that Amazon has to decision will require Amazon to develop a new way to manage the influx of deliveries that will be required in the upcoming holiday season, particularly in light of Amazon's latest push for faster deliveries. As mentioned earlier, this is not something that happened overnight - Amazon has been preparing for this move for years and time will tell if they've sufficiently laid the groundwork to execute on their plans.