Amazon is expanding its delivery network by a partnership with FedEx. The e-commerce giant signed a multi-year deal with the delivery service to fulfill its large package deliveries.
FedEx will deliver the e-commerce retailer’s packages alongside its other delivery partners, including UPS and USPS.
Steve Kelly, an Amazon spokesperson, said in an emailed statement to Retail Dive: “FedEx joins our other third-party partners like UPS and the USPS that work alongside our own last-mile delivery network to help us balance capacity to best serve customers.”
According to a report by Business Insider, the new deal with FedEx gives Amazon a cost advantage compared to its rival UPS. Further details of the agreement have not been disclosed.
FedEx and Amazon had previously parted ways in 2019 as Amazon was developing its own delivery network to fulfill orders, and the new deal marks a renewed partnership for the two companies.
This news comes on the heels of an announcement by UPS to downsize the number of Amazon deliveries as a way of focusing only on profitable deliveries.
UPS decided to lay off around 20,000 employees and close 73 fulfillment centers by the end of 2026 as part of its business strategy moving forward.
Meanwhile, Amazon also recently invested $4 billion in expanding its rural delivery network to improve its accessibility across the US.
The e-commerce retailer reported a strong performance in Q1 2025 but predicted a modest outlook for the upcoming fiscal year compared to Wall Street’s estimates.
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