Amazon has secured a deal with FedEx to handle select large package deliveries, countering recent cuts from UPS, which plans to reduce Amazon deliveries by over 50%. This multi-year agreement is expected to provide cost advantages for Amazon and represents a potential thaw in relations with FedEx after previous delivery ties were severed in 2019. While FedEx will join Amazon's third-party delivery network alongside UPS and the USPS, the move underscores a strategic shift in Amazon's logistics as it navigates its delivery partnerships amid UPS's operational restructuring.
Amazon has hired FedEx for large package deliveries after UPS's cuts. This multi-year agreement reflects a strategy to diversify delivery partnerships and reduce costs.
The agreement with FedEx is described as a "mutually beneficial" arrangement, indicating a strategic shift in Amazon's logistics operations following UPS's decisions.
FedEx's collaboration with Amazon is expected to offer cost favorability as part of diversifying Amazon's existing delivery network that includes UPS and USPS.
The decision follows UPS's significant downsizing strategy affecting Amazon, whereas FedEx and Amazon appear to be rekindling their previously severed delivery partnership.
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