MEMPHIS: June 07, 2019. FedEx says it won’t be renewing its US domestic contract with Amazon.com and reiterates the e-commerce company is not its largest customer. The percentage of FedEx revenue from Amazon.com represented less than 1.3 percent of the company's total revenue for the 12-month period ended December 31, 2018.

In a statement FedEx said the decision does not impact any existing contracts between Amazon.com and other FedEx business units or relating to international services.

“There is significant demand and opportunity for growth in e-commerce which is expected to grow from 50 million to 100 million packages a day in the U.S. by 2026,” declared the Memphis-based company. “FedEx has already built out the network and capacity to serve thousands of retailers in the e-commerce space. We are excited about the future of e-commerce and our role as a leader in it.”

At the end of May FedEx Corp. announced its FedEx Ground business unit would serve the majority of the US population with a daily service from January 2020 in a bid to further serve the fast-growing e-commerce market. In addition, nearly two million FedEx SmartPost packages that were previously given to the U.S. Postal Service for delivery to homes every day increasingly will be integrated into FedEx Ground operations.

“We have made significant investments in capacity, technology and automation at FedEx Ground over the past 20 years,” commented Raj Subramaniam, president and chief operating officer, FedEx Corp. “These investments have allowed us to gain ground market share for 19 of the last 20 years, and we are now ideally positioned to extend that growth as the average daily volume for small parcels in the US is expected to double by 2026,”