FedEx (FDX) said Wednesday that it is ending its ground delivery contract with Amazon (AMZN), which was set to renew at the end of the month.

"This change is consistent with our strategy to focus on the broader e-commerce market, which the recent announcements related to our FedEx ground network have us positioned extraordinarily well to do," a FedEx spokesperson said.

FedEx said in June that it is already going to end its air delivery contract with the online retail company.

Amazon and FedEx are increasingly in competition with each other. Amazon has expanded its logistics network as it seeks to implement its one-day Amazon Prime shipping service, with the company even experimenting with drones to carry out deliveries.

Earlier this summer, FedEx stated that it now sees Amazon as a serious competition due to its expansion.

The company said in its annual statement in July that "some high volume package shippers, such as, are developing and implementing in-house delivery capabilities and utilizing independent contractors for deliveries, and may be considered competitors."

"For example, is investing significant capital to establish a network of hubs, aircraft, and vehicles," FedEx added.

Amazon logistics has built up an impressive fleet of 70 planes and 10,000 vehicles but Goldman Sachs analysts have said the company still needs to invest $122 billion in its logistics network if it wants to catch up to UPS or FedEx.

FedEx, one of the nation's premier shipping companies, has 450,000 employees worldwide, with an average of 15 million shipments per business day.