Amazon Teams Up with FedEx for Large Package Deliveries

Published 1 hours agoAMZN

Amazon Teams Up with FedEx for Large Package Deliveries

Amazon has embarked on a multi-year partnership with FedEx to handle the residential delivery of select large packages. This strategic collaboration comes at a time when UPS has decided to scale back on its less-profitable deliveries for Amazon, part of a broader restructuring move where it cuts 20,000 jobs in an effort to boost efficiency and focus on more lucrative transportation opportunities.

The agreement with FedEx, initiated in February, reportedly brings Amazon cost advantages compared to its arrangements with UPS, according to Reuters. However, Amazon has clarified that FedEx will join its existing network of third-party delivery services, including UPS and the USPS, rather than replace them altogether. The partnership with FedEx also marks a renewed connection, as the two companies had previously ceased their residential delivery contract in 2019.

The renewed collaboration highlights the dynamic competition in the parcel delivery industry as FedEx and UPS continue to vie for market share. For FedEx, this new partnership could bolster its position against UPS, demonstrating the ever-evolving strategies in the logistics sector aimed at securing strong footholds in a competitive landscape.

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