Amazon and FedEx Renew Delivery Partnership

Amazon has signed a multiyear agreement with FedEx to resume residential delivery of select large packages, renewing their partnership after a six-year hiatus following the end of their 2019 contract. This move comes as UPS, Amazon's largest delivery partner, plans to cut its package volume from Amazon by half by 2026 and lay off 20,000 workers amid operational restructuring. The FedEx deal reportedly provides Amazon with cost advantages and will supplement—not fully replace—existing partnerships with UPS and USPS, alongside Amazon’s own logistics network. Amazon now handles more than two-thirds of its deliveries internally, shifting industry dynamics. The agreement signals a thaw in the previously strained relationship between Amazon and FedEx. Major logistics firms continue to compete for e-commerce market share as Amazon expands its insourcing of deliveries.