Amazon and FedEx Reunite After 7 Years with Strategic New Delivery Partnership
After a seven-year hiatus, Amazon and FedEx have officially re-established their business relationship, signing a multi-year agreement for the residential delivery of select large packages. The renewed partnership marks a strategic move for both logistics giants as they adapt to shifting dynamics in the e-commerce delivery landscape.
This announcement comes just weeks after UPS revealed plans to significantly reduce its delivery volume for Amazon by more than 50% by 2026. As part of a major cost-cutting and restructuring effort, UPS is also laying off 20,000 workers and closing 73 facilities across the country.
FedEx’s return to Amazon’s delivery network signals a competitive shake-up and may strengthen both companies’ capabilities in last-mile logistics, especially for oversized deliveries, as consumer expectations continue to evolve in the fast growing e-commerce sector.
A FedEx spokesperson told Logistics Management the company has “reached a mutually beneficial, multi-year agreement with Amazon to provide residential delivery of select packages, including large items.” The spokesperson added, “FedEx has the global network, capacity, and expertise to serve the shipping needs of thousands of retailers in the e-commerce space.”
According to Business Insider, the deal with FedEx—signed in February—offers Amazon “cost favourability” compared to using UPS.
The renewed partnership between Amazon and FedEx signals more than just a business reunion, it marks a strategic recalibration in the logistics sector. Their relationship, originally severed in 2019 when Amazon prioritised building its own delivery infrastructure, is now evolving in response to broader market shifts. At the time of the split, FedEx minimized Amazon’s contribution to its overall revenue and shifted its focus to the broader e-commerce market.
Under the new agreement, FedEx will join Amazon’s network of third-party logistics providers, working alongside UPS and the U.S. Postal Service to support the retail giant’s in-house delivery operations. Amazon clarified that FedEx’s involvement does not replace UPS, but rather expands its logistics capabilities, particularly for large residential package deliveries.
This move comes amid intensifying competition between FedEx and UPS, with both companies vying for market share and revisiting strategic partnerships. As UPS reduces its Amazon volume and undergoes a major restructuring, the renewed deal offers FedEx a timely opportunity to strengthen its role in last-mile delivery—a crucial and growing component of e-commerce logistics.
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