FedEx Express, starting in March, will contract with FedEx Ground to deliver residential shipments, the company announced.
The stock rallied nearly 5 percent in a down market on the news.
“This move makes residential deliveries more efficient by putting the right package in the right network at the right cost to serve our customers,” said Raj Subramaniam, president and chief operating officer of FedEx Corp. “We continue to flex our network to stay ahead of e-commerce growth, and that includes adjustments to better handle the demand for residential deliveries while lowering our cost to serve.”
The delivery wars are getting even fiercer as more Americans shop online for everything from clothes to groceries to big-ticket items.
There is no love lost between FedEx and Amazon. In August, FedEx announced it would end ground shipping services for Amazon. That announcement came one month after FedEx said it would allow its contract with Amazon for air shipping to expire.
In December, Amazon lifted a ban on FedEx after delivery times improved after falling behind.
Following FedEx's last quarterly results, which were hurt by the loss of Amazon volume, the company promised to lap the e-commerce giant in 2021.