Amazon (AMZN) and FedEx (FDX) Renew Partnership for Large Item Deliveries

May 13, 2025

Amazon (AMZN, Financial) and FedEx (FDX) have announced a multi-year partnership, marking the renewal of their collaboration that ended in 2019. Under this agreement, FedEx will resume its role as a delivery service provider for Amazon's large items. This collaboration comes as UPS (UPS) plans to reduce its package handling for Amazon by 50% by the end of 2026.

A FedEx spokesperson stated that the agreement is mutually beneficial and will focus on residential deliveries of large items for Amazon. Meanwhile, Amazon clarified that this partnership is not intended to replace its existing arrangements with UPS. Currently, Amazon's internal logistics network handles over two-thirds of its U.S. package deliveries independently.

Steve Kelly, an Amazon spokesperson, mentioned that the agreement with FedEx positions it as one of the third-party logistics partners, alongside UPS and the U.S. Postal Service. This collaboration aims to enhance capacity and improve customer experience by complementing Amazon's last-mile delivery network.

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I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

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