FedEx Corp confirmed on Wednesday it would terminate its contract with Amazon.com Inc for small-package ground deliveries, as the online retailer focuses on building out its own delivery network of planes, trucks and vans. Analysts have said Amazon has secured a better rate with UPS for package deliveries on planes, so it makes little sense for the company to partner with them, posing as a potential long-term threat to FedEx. Amazon accounted for less than 1.3% of FedEx’s revenue last year. UPS, which derives a relatively larger share of revenue from the online retailer, is widely expected to benefit from higher volumes following the latest move, according to analysts.

 

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