Amazon teams up with FedEx for big package deliveries after UPS pullback

Amazon has entered into a partnership with FedEx for delivery of large packages, the companies said on Monday, according to a report by Reuters. This came weeks after the shipping and logistics company United Parcel Service (UPS) announced that it is stopping its less profitable deliveries for Amazon.

Following this, FedEx shares jumped on Monday, rising 7 per cent — even more than the overall gains in the stock market. FedEx said under this agreement, it will deliver the select large packages for e-commerce retailer Amazon.