Amazon and FedEx Forge New Shipping Alliance

In a significant shift to its delivery strategy, Amazon has partnered with FedEx, as reported by Business Insider. This move comes in the wake of UPS's decision to drastically reduce its volume of Amazon packages by more than half through 2026.

Details of the Deal

The agreement, finalized in February, positions FedEx to address delivery gaps, especially for Amazon's Extra Large items. An internal document highlights that the FedEx partnership provides Amazon with "cost favorability" over UPS, though specific terms remain under wraps.

Amazon's Strategic Move

Amazon clarifies that this partnership is aimed at "balancing capacity" rather than completely replacing UPS. This strategic alliance underscores Amazon's adaptability in ensuring seamless delivery services amidst changing logistics landscapes.