Core Insights - FedEx discontinued its partnership with Amazon in 2019 due to Amazon becoming a competitor in the last-mile delivery space [1] - Walmart is expanding its last-mile delivery capabilities through its app "Spark" and partnerships with gig economy workers [2] - Walmart is utilizing other last-mile carriers like Roadie and DoorDash, and is shifting intercity transportation to OnTrac to reduce costs [3] FedEx's Challenges - FedEx needs to reinvent its B2C delivery model to compete effectively, as its current B2B-focused network is not cost-effective for B2C deliveries [3] - The consumer preference for low-cost delivery options means that brand recognition is less important in the B2C market [4] - FedEx's contractor model, designed for larger B2B packages, incurs higher costs for smaller B2C parcels [5] Competitive Landscape - UPS faces challenges in the lightweight B2C parcel market due to high labor costs associated with its unionized workforce [6] - FedEx's contracted driver costs are lower than UPS, but it still struggles to compete with gig-based carriers that utilize crowd-sourced drivers [6]