FedEx Corp. will not renew its ground-delivery contract with Amazon.com Inc., Bloomberg News reported Aug. 7.
The contract is set to expire at the end of August.
The decision is in line with the company's strategy to focus on the broader e-commerce market, FedEx reportedly said in a statement.
In June, the logistics service provider said the company is ending its U.S. contract with Amazon to transport packages on its air cargo service FedEx Express.
However, FedEx will reportedly continue its contract with Amazon for international deliveries.
FedEx did not immediately respond to S&P Global Market Intelligence's request for comment.
Amazon, which has been expanding its logistics network through new fulfillment centers and partnerships, accounted for about 1.3% of FedEx's total revenue in 2018.
Amazon recently teamed up with General Electric Co.'s aircraft leasing unit to lease 15 more Boeing 737-800 cargo aircraft for air delivery in the U.S.