Amazon is gearing up to launch its very own delivery service. The service would target businesses and will be competing with the likes of UPS and FedEx.
“Shipping with Amazon” as it will be titled will provide businesses and third-party sellers the option of having their goods picked up and delivered directly to their customers. The first “Shipping with Amazon” deliveries are set to occur in Los Angeles and eventually expand from there. After news broke of Amazon’s new venture, stock shares for their direct competitors, UPS and FedEx, took a dip of 2.64 and 1.76 percent respectively.
Amazon has a longstanding relationship with UPS and it doesn’t seem as though the company will immediately abandon the relationship in the short-term, but long-term prospects will be called into question depending on the success of Amazon’s latest venture. An Amazon spokesperson said, “We’re always innovating and experimenting on behalf of customers and the businesses that sell and grow on Amazon to create faster lower-cost delivery choices.”