FedEx said Friday that it’s not renewing its express air-delivery contract with Amazon’s.
The contract loss could hamper, which already .
“FedEx has made the strategic decision to not renew our FedEx Express contract with Amazon as we focus on serving the broader market. We are excited about the future of e-commerce and our role as a leader in it,” it said.
FedEx cited the “significant demand and opportunity” in e-commerce as its reason for ending the contract, saying online delivery is expected to grow from 50 million to 100 million parcels every day in the US by 2026.
FedEx also pointed to its e-commerce contracts with Target, Walmart and Walgreens in an emailed statement Friday.
“FedEx has already built out the network and capacity to serve thousands of retailers in the e-commerce space,” it said.
In response, Amazon said it respects FedEx’s decision and thanked the company for its past role in serving Amazon’s customers, according to an emailed statement.
Amazon still retains access to FedEx Ground and international delivery services, however. The e-commerce giant has been working on expanding its own delivery infrastructure, havingand broken ground on a .
Earlier this week,conference in Las Vegas.