FedEx announced in June that it was ending its express U.S. shipping contract with Amazon, which only affected air services. At the time, FedEx said that it was a "strategic decision" that would not affect its other contracts with Amazon.
Wednesday's announcement, first reported by Bloomberg News, indicates a more rapid severing of ties between the two companies as Amazon shifts its focus to its own delivery network.
In late June, Amazon announced a new "Delivery Service Partners " program in an effort to attract entrepreneurs who can create their own local delivery networks with up to 40 vans each. It also debuted a new delivery drone in early June, which it hopes will eventually speed up delivery for its North American Prime members.
Amazon also has a $1.5 billion hub opening in northern Kentucky in 2021 where it is expanding its Amazon Air fleet to include 50 planes. Amazon said its air network can make "two-day shipping possible almost anywhere in the U.S."
FedEx and Amazon were not immediately available for comment. Neither company had formally posted a statement on their respective websites.
Shares of FedEx were down 2.3% at $157.49 on the New York Stock Exchange. Shares of Amazon were down 0.56% at $1,777.80 on the Nasdaq Stock Market.
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