After a seven-year split, FedEx and Amazon are back in business together, signing a multi-year agreement for residential delivery of select large packages.
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The deal, confirmed by both companies, comes weeks after UPS announced plans to reduce its Amazon delivery volume by more than 50% by 2026. As part of that shift, UPS is cutting 20,000 jobs and shutting 73 facilities under a major cost-cutting and restructuring plan.
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 favorability” compared to using UPS.
This new partnership marks a big change in the relationship between the two companies, which cut ties in 2019 as Amazon expanded its own delivery network. At that time, FedEx said Amazon accounted for less than 1.3% of its total revenue and opted to focus on the broader e-commerce market.
While the new agreement does not replace UPS, Amazon said FedEx will join its group of third-party partners—including UPS and the U.S. Postal Service—working alongside Amazon’s in-house delivery network.
FedEx and UPS have been locked in a competitive battle for parcel market share over the past five years, often winning over parts of each other’s customer base. This deal could give FedEx a new edge as Amazon looks to rethink its last-mile delivery strategy.
For more analysis, read Logistics Management’s coverage of the partnership.
