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FedEx won't renew ground delivery contract with Amazon

There are more signs that the online retailer is seen as a competitor rather than a partner.

FedEx Truck

FedEx will end another delivery service with Amazon. 

Xinhua News Agency/Getty Images

FedEx is taking another step to break away from Amazon. The US-based shipper will stop ground deliveries for the online retail giant. This comes after it ended air delivery for Amazon in the US back in June. 

FedEx will not renew its ground deliveries contract with Amazon at the end of August, Bloomberg reported Wednesday. The company will still provide international deliveries for the online retailer. 

"This change is consistent with our strategy to focus on the broader e-commerce market," FedEx said in a statement.  

In recent years, Amazon has begun bolstering its own delivery options to get products quicker to customers. It introduced one-day Prime shipping in April and offers more than 10 million items with that shipping option. 

"We are constantly innovating to improve the carrier experience and sometimes that means reevaluating our carrier relationships," Amazon said in a statement Wednesday. "FedEx has been a great partner over the years and we appreciate all their work delivering packages to our customers."

So far, Amazon purchased more than 2,200 delivery vans in July, expanded its fleet of airplanes in December and has built a cargo hub costing more than $1 billion. 

Originally published on Aug. 7 at 6:33 a.m. PT.
Update, 7:25 a.m. PT:  Adds background details. 10:47 a.m. PT: Adds Amazon comment.