Amazon has entered into a new partnership with FedEx, announced in late February, to handle residential delivery of select large packages. This agreement positions FedEx as a key third-party partner alongside other carriers like UPS and the U.S. Postal Service, balancing Amazon's last-mile delivery network capacity.
This strategic collaboration is expected to be 'net positive' for FedEx's average system yields, as it will likely increase the average weight per package and overall yield. FedEx's ground segment offers 20-25% faster processing speeds in some routes compared to Amazon's internal logistics arm, providing a competitive advantage.
The partnership leverages FedEx's extensive network and operational capabilities to support Amazon's growing demand for large package delivery. This development signifies a significant customer win for FedEx, potentially driving profitable volume and strengthening its position in the evolving e-commerce logistics landscape.
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