FedEx ends its Amazon ground contract (2019)
FedEx chose not to renew its U.S. ground-delivery contract with Amazon, walking away from its own large customer. FedEx argued Amazon was becoming a competitor building its own delivery arm, and that the volume was not worth the strategic risk.
FedEx lost the revenue and took market questions about the decision. Amazon shifted the volume to its growing in-house network.
Amazon built one of the largest delivery operations in the country, validating FedEx's read that the relationship was risky rather than durable.
UPS is making the same bet FedEx made, but larger and slower: treat Amazon as low-value volume and give it up on purpose. It shows the choice is a known playbook, not a panic move.
