Amazon Is Launching Its Own Shipping Service
UPS and FedEx shares fell 2 percent as a result of the news.
Amazon has begun a new initiative called “Shipping with Amazon” that will directly compete with UPS and FedEx. The program will consist of end-to-end shipping, with pickups from businesses and shipments made to consumers with a launch for the service scheduled to begin in LA in the “coming weeks” with a slow rollout soon to follow.
This program will start off with companies that sell products via its website before eventually offering shipping services to any business, which would undercut UPS and FedEX on rates. Following the announcement by Amazon, United Parcel Service Inc. and FedEx Corp. shares fell 2 percent. Amazon said on Friday it was “always innovating and experimenting on behalf of customers and the businesses that sell and grow on Amazon to create faster lower-cost delivery choices.” In other Amazon news, it’s been revealed the company has patented trackable wristbands for warehouse employees.
