FedEx will not renew its contract, which expires end of August, for ground delivery of packages for Amazon. In June, FedEx ceased shipping Amazon packages by air but continued ground delivery. FedEx is cementing its relationships with Target, Walmart and other big e-tailers that compete with Amazon. The company released a statement that its move is “consistent with our strategy to focus on the broader e-commerce market,” and its chief operating officer Rajesh Subramaniam said FedEx is “all-in on e-commerce.” Continue reading FedEx Ends Delivery for Amazon, Supports Other E-Tailers

Amazon is expanding its package delivery business in an interesting way: it’s inviting interested parties to form small delivery companies of up to 100 drivers and to lease between 20 and 40 Amazon vans. In this way, Amazon can quickly expand its “last mile” delivery network into turf now dominated by FedEx and United Parcel Service. The company says it is merely responding to the need to handle an increasing number of orders on its platform; analysts estimate that more than $4 of every $10 spent online is on Amazon. Continue reading Amazon to Launch Small Delivery Companies for ‘Last Mile’

Amazon plans to launch “Shipping with Amazon,” a delivery service that will start in Los Angeles and cater to the independent merchants that sell on its site. The company intends to expand the service to additional cities and businesses over time. But analysts conclude that Amazon would have to spend tens of billions of dollars, and buy thousands of trucks, hundreds of planes and create thousands of sorting centers to scale out to the national level and handle millions of packages daily. Continue reading Amazon Plans to Launch New Delivery Service for Businesses