FedEx is ending its ground delivery contract with Amazon.
FedEx has announced that when the contract between the two companies is up at the end of the month, it won't be renewing it as it wants to focus on the "broader e-commerce market".
A FedEx spokesperson said: "This change is consistent with our strategy to focus on the broader e-commerce market, which the recent announcements related to our FedEx Ground network have us positioned extraordinarily well to do."
An Amazon spokesperson added: "We are constantly innovating to improve the carrier experience and sometimes that means reevaluating our carrier relationships. FedEx has been a great partner over the years and we appreciate all their work delivering packages to our customers."
According to Bloomberg, shares of FedEx and Amazon were down at least one per cent in premarket trading when the news was announced on Wednesday (07.09.19).
In June, FedEx announced that it is ending its express US shipping contract with Amazon, which revealed its own Delivery Service Partners programme the same month.