Particle.news
Download on the App Store
4 ARTICLES
·
last wk.

Amazon Partners with FedEx for Large-Package Deliveries as UPS Reduces Role

The multi-year agreement marks a renewed collaboration between Amazon and FedEx, ensuring capacity for large-item deliveries while UPS scales back its involvement.

Image
Image

Overview

  • Amazon has signed a multi-year deal with FedEx to handle residential delivery of select large packages, confirmed by both companies.
  • The agreement follows UPS's decision to reduce its Amazon shipment volumes by over 50% by the second half of 2026, citing profitability concerns.
  • FedEx shares surged 7% after the announcement, signaling market optimism about the partnership's potential impact.
  • Amazon clarified that the FedEx partnership will not replace UPS but will complement its existing third-party partners, including USPS, alongside its in-house logistics network.
  • Amazon’s Extra Large delivery team plans to rely on FedEx for 100% of capacity risks in the second half of 2025, according to internal documents.