(Reuters) -Amazon has hired FedEx to handle some of its large package deliveries, the companies said on Monday, weeks after UPS said it was halting its less-profitable deliveries for the e-commerce retailer and cutting 20,000 jobs.

FedEx shares surged on Monday even more than rallying Wall Street benchmarks, finishing up 7%. The Memphis-based delivery company said the multi-year agreement covers residential delivery of select large packages for Amazon.