FedEx axes Amazon Prime –not profitable enough — and UPS has the same problem

This piece from Business Insider has raised important questions over the benefits of working with Amazon. Last month The Loadstar reported that FedEx had dumped its contract with the e-commerce giant. Unsurprisingly eyebrows were raised, but the express operator said it made very little for the work it did. According to this report, Amazon equated to 1.3% of FedEx’s 2018 revenue. And the profit? “Something between tiny and zero” – but certainly less than 0.25%. UPS, it seems, is starting to realise it is having a similar problem – although it does better than FedEx. Analysts say that undoubtedly, Amazon boasts a lot of volume, but there’s not much money to made working for it.