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June 8, 2019, 8:24 a.m. EDT

FedEx opts out of Express service contract with Amazon to focus on 'broader e-commerce market'

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By Tonya Garcia

FedEx Corp. /zigman2/quotes/203047719/composite FDX +6.55% said in a statement posted on its website Friday that it has made the decision not to renew its FedEx Express U.S. domestic contract with Amazon.com Inc. /zigman2/quotes/210331248/composite AMZN -1.78% in order to focus on the "broader e-commerce market." The decision doesn't impact other Amazon contracts, and the Amazon business only accounted for 1.3% of FedEx's total revenue for the year ending Dec. 31, 2018, the statement said. With growth in e-commerce, daily package delivery is set to grow from 50 million today to 100 million in the U.S. by 2026. FedEx says it has a "network and capacity to serve thousands of retailers in the e-commerce space." Amazon recently announced that it would half its free delivery time for Prime members from two days to one, and will deliver packages by drone within months. "We respect FedEx's decision and thank them for their role serving Amazon customers over the years," read a statement from an Amazon spokesperson sent to MarketWatch. Competition among retailers to provide quick, convenient delivery was also raised another level on Friday with an announcement from Walmart Inc. /zigman2/quotes/207374728/composite WMT +0.48% that it will make deliveries into customers' homes. FedEx stock is up 0.7% in Friday trading, but down about 2% for the year to date. Amazon stock is up 2.7%, and about 20% for 2019 so far. And the S&P 500 index /zigman2/quotes/210599714/realtime SPX +0.06% has gained nearly 15% for the year to date.

/zigman2/quotes/203047719/composite
US : U.S.: NYSE
$ 183.53
+11.29 +6.55%
Volume: 6.31M
Aug. 7, 2020 4:00p
P/E Ratio
12.09
Dividend Yield
1.42%
Market Cap
$48.08 billion
Rev. per Employee
$304,846
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/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 3,167.46
-57.54 -1.78%
Volume: 3.94M
Aug. 7, 2020 4:00p
P/E Ratio
121.75
Dividend Yield
N/A
Market Cap
$1586.55 billion
Rev. per Employee
$359,671
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/zigman2/quotes/207374728/composite
US : U.S.: NYSE
$ 129.97
+0.62 +0.48%
Volume: 5.52M
Aug. 7, 2020 4:00p
P/E Ratio
24.72
Dividend Yield
1.66%
Market Cap
$368.07 billion
Rev. per Employee
$223,654
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/zigman2/quotes/210599714/realtime
US : S&P US
3,351.28
+2.12 +0.06%
Volume: 2.28B
Aug. 7, 2020 5:10p
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