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Amazon Loses FedEx Express Delivery

Amazon better double down on its Prime Air drones. With Amazon Prime Day just a few weeks away, FedEx today announced that it's partially ending its relationship with Amazon.

The company said it will not renew its domestic FedEx Express contract with Amazon so that it can work with other retailers. Deliveries made via FedEx's Express service typically arrive overnight or in two to three days.

"FedEx has made the strategic decision to not renew the FedEx Express U.S. domestic contract with Amazon.com, Inc. as we focus on serving the broader e-commerce market," the company said via a written statement.

It's not clear how this may affect Prime member purchases. According to FedEx's statement, Amazon accounted for less than 1.3% of FedEx's revenue in 2018. Moreover, FedEx will still provide Amazon with other delivery services such as FedEx Ground and FedEx's international services.

Nevertheless, the news is sure to throw a wrench in Amazon's plans to roll out 1-day deliveries. It could also cause some shipping lag on big shopping days like Amazon Prime Day.

Amazon did not immediately respond to our request for comment.