Amazon.com to directly compete with United Parcel Service and FedEx
Amazon.com Inc. (AMZN) is preparing to launch a delivery service for businesses, positioning it to directly compete with United Parcel Service Inc. and FedEx Corp.
The service would involve Amazon picking up packages from businesses and shipping them to consumers, people familiar with the matter say.
The tech giant expects to roll out the SWA service in Los Angeles “in the coming weeks” with third-party merchants that sell products through its website, the people say, and could expand the service to more cities as soon as this year.
Amazon’s business delivery is expected to roll out in Los Angeles in the coming weeks with third-party merchants that sell goods via its website. More cities are to follow.
UPS said it is still a partner of Amazon.
“UPS continues to support Amazon and many other customers and we don’t make comments about their business strategies or decisions regarding their utilization of UPS services,” a spokesperson for the company said.
In pre-market trading, FedEx is down about 2% and UPS dropped 3.5%.
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