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FedEx Dumps an Amazon Contract

FedEx appears to be getting fed up with Amazon. The company told Bloomberg on Friday that it won’t renew a contract for air-deliveries with the internet retailer, which expires at the end of the month. FedEx still has agreements with Amazon for international operations and ground deliveries. Only about 1.3% of FedEx’s sales last year came from Amazon, Bloomberg reported.

There is a growing consensus that the in-house transportation network Amazon is slowly building—consisting of trucks, airplanes, last-mile couriers and even drones—will one day allow the retailer to handle most or all of its own deliveries. That day isn’t here yet, which means Amazon still needs help from UPS, the United States Postal Service and others to get orders to customers. But FedEx’s decision could be a sign that other shippers may also pull the plug on their Amazon deals as business from the retailer dwindles. 

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