FedEx Corp declared that they had no interest in renewing their partnership contract that deals
with U.S air delivery with Amazon.com; as they look to raid and majorly deal with freight
transportation. The volume of the package through online shopping is expected to hit a double
compared to the current capacities, and therefore FedEx will turn their attention towards
exchange at the borders according to a statement released by FedEx. The partnership contract is
to expire at the end of the current month. The agreement covers neither international services nor
domestic operations in some areas.

The unexpected sudden move by FedEx means that they will now have to depend on small
companies with lesser bargaining power in comparison to mazon.com, to be able to gunner more
discounts. The growth of Amazon into a large logistics company has led to lots of pressure to
both UPS Inc. and FedEx for less costly, and hastier deliveries, primarily because Amazon,
builds its aircraft fleet and their delivery capabilities.

Satish Jindel, the founder SJ Consulting Group, reiterated that the services offered by FedEx to
Amazon would continually be fed and therefore FedEx would instead render their services to
other customers and not to Amazon who was slowly but surely chipping away. He added that
they are appreciative of FedEx’s services.

According to FedEx, Amazon represented 1.3% of sales the previous year. Jindel claimed that
the services rendered by FedEx in the domestic air-parcel business with Amazon are minimal
even at their best. The Memphis, a courier based in Tenn., stated that Amazon is not its largest
customer. FedEx reported that they would now turn their focus to other customers inclusive of
Walmart Inc., Target Corp., and Walgreens Boots Alliance Inc.

FedEx released a statement saying that there is lots of room for growth in e-commerce, an
increase from 50 million to 100 million packages a day in the U.S by 2026 and FedEx are
prepared to provide the services to thousands of customers.