Amazon and FedEx Renew Partnership to Boost Big Package Deliveries Amid UPS Cutbacks

Amazon.com Inc. (AMZN.U.S.) and FedEx Corp. (FDX.U.S.) have entered into a multi-year agreement, marking the rekindling of their partnership to handle the delivery of large packages. This collaboration signifies a renewed alliance between the two companies after their previous relationship was severed in 2019.

The timing of this renewed collaboration is noteworthy as United Parcel Service (UPS.U.S.) had earlier announced plans to reduce its package handling for Amazon by half by the end of 2026. FedEx emerged as a strategic choice for Amazon to supplement its delivery services for large items, marking a significant shift in logistics operations.

In an email statement, a FedEx spokesperson expressed, "We have reached a mutually beneficial multi-year agreement to provide residential delivery services for specified large items from Amazon." This partnership showcases both companies' strategic positioning to enhance delivery efficiency for oversized packages.

Amazon clarified that this partnership with FedEx is not intended to replace its existing relationships with other logistics providers such as UPS. Steve Kelly, an Amazon spokesperson, stated via email, "Our agreement with FedEx positions them as one of our third-party logistics partners tasked with servicing customers. FedEx will work alongside partners like UPS and the United States Postal Service, complementing our last-mile delivery network to optimize capacity and enhance customer experience."

This development indicates Amazon’s strategy to diversify its logistics partnerships while still maintaining a robust internal logistics system that handles over two-thirds of its deliveries within the U.S. by leveraging a network of small and medium-sized businesses.