FedEx cuts ties with Amazon as e-retailer builds its own delivery fleet

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(CBS NEWS)- FedEx is cutting ties with Amazon as the online retailer builds out its own delivery fleet, directly competing with the shippers who used to deliver its packages.

The shipping company announced Wednesday that it would no longer make ground deliveries for Amazon once its contract expires at the end of this month. The move comes two months after FedEx said it was terminating its air delivery contract with Amazon.

Amazon.com Inc. is building its own fleet of air and ground transportation to have more control of how its packages are delivered and cut its reliance on FedEx, UPS and the U.S. Postal Service. The Seattle-based company has been leasing jets, building package-sorting hubs at several airports in the U.S. and has launched a program that lets contractors start businesses delivering packages in vans stamped with the Amazon logo.

FedEx is cutting ties with Amazon as the online retailer builds out its own delivery fleet, directly competing with the shippers who used to deliver its packages.

The shipping company announced Wednesday that it would no longer make ground deliveries for Amazon once its contract expires at the end of this month. The move comes two months after FedEx said it was terminating its air delivery contract with Amazon.

Amazon.com Inc. is building its own fleet of air and ground transportation to have more control of how its packages are delivered and cut its reliance on FedEx, UPS and the U.S. Postal Service. The Seattle-based company has been leasing jets, building package-sorting hubs at several airports in the U.S. and has launched a program that lets contractors start businesses delivering packages in vans stamped with the Amazon logo.

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