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FedEx, Amazon strike large-package delivery deal

  • Amazon and FedEx announced on Monday a new multiyear partnership where FedEx will deliver select large packages to Amazon customers' residences.
  • This partnership follows UPS's earlier decision to reduce Amazon delivery volume due to profitability concerns, creating a need to balance capacity.
  • FedEx will join UPS and USPS as a third-party partner working alongside Amazon's own last-mile network to better serve customer demand and fill delivery gaps.
  • FedEx stated the deal is "mutually beneficial" and provides Amazon with "cost favorability" compared to UPS, while Amazon's spokesman Steve Kelly confirmed FedEx as part of several partners.
  • The agreement marks a renewed alliance after FedEx cut ties with Amazon in 2019 and suggests ongoing adjustments in the logistics industry around large-package deliveries.
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Business Insider broke the news in United States on Monday, May 12, 2025.
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