FedEx won't do ground delivery for Amazon anymore

FedEx Ground.
(Image credit: Justin Sullivan/Getty Images)

FedEx is continuing to cut ties with Amazon.

The shipping giant's ground delivery contract with Amazon is over at the end of the month, and FedEx won't renew it, Bloomberg reported Wednesday and CNBC confirmed through a FedEx spokesperson. The move comes after FedEx ended its express U.S. shipping contract with Amazon, and as Amazon continues to grow its own delivery service.

When FedEx ended its air contract with Amazon in June, a spokesperson called it a "strategic decision" that wouldn't affect its other contracts. Yet just two months later, FedEx has moved to cut ties with one of its biggest shipping sources. Again, FedEx said "this change is consistent with our strategy to focus on the broader e-commerce market, which the recent announcements related to our FedEx Ground network have us positioned extraordinarily well to do," The Wall Street Journal reported via a statement.

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Amazon in June announced it was launching a "Delivery Service Partners" program that would encourage local entrepreneurs to build their own Amazon delivery services of up to 40 vans. It has also recently debuted its delivery drone service, and will expand its Amazon Air fleet to 50 planes by 2021.

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Kathryn is a graduate of Syracuse University, with degrees in magazine journalism and information technology, along with hours to earn another degree after working at SU's independent paper The Daily Orange. She's currently recovering from a horse addiction while living in New York City, and likes to share her extremely dry sense of humor on Twitter.