Amazon just made a smart move that could change how your packages get delivered. The online shopping giant has teamed up with FedEx again after being apart for six years. This comes right after UPS decided to cut back on Amazon deliveries in a big way.
Why Amazon Needed a New Partner
UPS shocked many people when it said it would cut Amazon package deliveries by more than 50% by 2026. This wasn’t a small change – it was huge. UPS is cutting 20,000 jobs this year, which is about 4% of its total workers. The company is also closing 73 facilities as part of what they call their biggest network change ever.
Why did UPS make this choice? They want to focus on making more money from fewer packages instead of handling lots of packages with smaller profits. UPS expects to save $3.5 billion from these changes.
The New Amazon-FedEx Deal
Amazon and FedEx signed a multi-year agreement in the US, bringing back their partnership after six years apart. The deal was actually signed in late February 2025, but news about it came out in May.
This isn’t Amazon’s first time working with FedEx. The two companies used to work together until 2019, when FedEx decided to stop delivering Amazon packages. Back then, FedEx wanted to focus on other customers who paid better rates.
What This Means for Package Delivery
The timing of this partnership is interesting. Just as UPS is pulling back, Amazon needed someone else to help deliver packages. However, Amazon says the FedEx deal isn’t meant to replace all the delivery capacity from UPS.
Amazon has built its own delivery network over the years. The company now delivers many of its own packages using Amazon trucks and drivers. But even with their own delivery system, Amazon still needs help from other companies during busy times like holiday seasons.
Numbers That Tell the Story
Here are some key facts about this shipping shake-up:
- UPS plans to shrink Amazon shipments by more than 50% by the second half of 2026
- UPS employs about 490,000 workers globally
- The shipping changes are expected to save UPS $3.5 billion
- Amazon and FedEx hadn’t worked together since 2019
What Shoppers Should Expect
For regular Amazon customers, this change might not be very noticeable. Amazon has gotten really good at managing deliveries through different companies. Your packages might come from Amazon’s own drivers, FedEx, USPS, or still from UPS (just fewer of them).
The partnership could actually be good news for shoppers. More delivery options often mean faster shipping times and better coverage, especially in areas where one company might be stronger than others.
Looking Ahead
This partnership shows how the delivery business keeps changing. Companies are always looking for the best deals and most reliable partners. For Amazon, having FedEx back as a partner gives them more options and backup plans.
According to internal documents, the FedEx deal gives Amazon “cost favorability”, which means better prices. This could help Amazon keep shipping costs down for customers.
The delivery world is always evolving, and this Amazon-FedEx partnership is just the latest chapter. As online shopping continues to grow, expect more changes in how your packages get from warehouses to your door.
