UPS Struggling Against Amazon, FedEx Delivery Deal
July 18, 2025
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3:33Now PlayingUPS Struggling Against Amazon, FedEx Delivery Deal
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as posted by the channelBrandon Oglenski, Airlines Analyst at Barclays, discusses air-travel outlook as well as FedEx and Amazon's large-package delivery deal struck back in May.
Amazon.com Inc. has a multiyear agreement with FedEx Corp. to deliver large packages for the online retailer, renewing a relationship between the two companies that ended in 2019.
The deal follows plans announced in January by United Parcel Service Inc. to reduce by half the number of packages it delivers for Amazon by the end of 2026.
“We have reached a mutually beneficial, multiyear agreement to provide residential delivery of select large packages for Amazon,” a FedEx spokesperson said in an emailed statement.
Amazon, in a statement, said it isn’t planning to use FedEx to replace the business it still does with UPS. Amazon delivers more than two-thirds of its own packages in the US through its own logistics network made up of small businesses.
”We’ve reached an agreement with FedEx to serve as one of several third-party partners to deliver packages to our customers,” Amazon spokesman Steve Kelly said in an emailed statement. “FedEx joins our other third-party partners like UPS and the USPS, that work alongside our own last mile delivery network to help us balance capacity to best serve customers.”
Business Insider reported news of the Amazon-FedEx agreement earlier, citing internal Amazon documents.
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