U.S. Markets closed

FedEx Express Drops Amazon, Focuses On 'Broader E-Commerce Market'

Tanzeel Akhtar

FedEx Corporation (NYSE: FDX) said Friday that it will not renew Amazon.com, Inc. (NASDAQ: AMZN)'s domestic express contract.

"FedEx has made the strategic decision to not renew the FedEx Express U.S. domestic contract with Amazon.com, Inc. as we focus on serving the broader e-commerce market," the courier service said in a statement.

The decision does not impact existing contracts between Amazon and other FedEx business units, nor international services, FedEx said. 

Amazon is not FedEx’s largest customer, and the percentage of total FedEx revenue attributable to Amazon accounted for less than 1.3 percent of total FedEx revenue for the 12-month period ended Dec. 31, the company said. 

FedEx shares were up 0.8 percent at $158.10 at the time of publication Friday, while Amazon shares were trading higher by 2.6 percent at $1,800.02. 

Related Link:

FedEx's Express Unit Creates Flex-Time Driver Classification

FedEx Move To 7-Day Ground Delivery Will Have Costs Before Revenue Gains

See more from Benzinga

© 2019 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.