Overview

• Amazon and FedEx have signed a multi-year deal for residential delivery of large packages, renewing their partnership after a 2019 split.
• The agreement helps Amazon address capacity challenges stemming from UPS's planned reduction of deliveries by over 50% by 2026.
• Amazon's in-house logistics network now handles over two-thirds of its U.S. deliveries, with FedEx joining other partners like USPS and UPS.
• The deal reportedly provides Amazon with cost benefits compared to UPS, though it is not intended to fully replace UPS services.
• FedEx shares surged 7% following the announcement, reflecting positive market reception to the renewed collaboration.