Amazon is reportedly set to launch a new delivery service soon. I know what you’re thinking. “Amazon already has a delivery service.” That was the same thing I was thinking, until I paid a little closer attention to what the new service Amazon is about to launch was. Amazon will not only be delivering products they sell now, they also plan to start delivering products the company doesn’t sell. A shipping business. One to rival UPS and FedEx.
The Wall Street Journal (@wsj) was first to break the news of Amazon’s new delivery service which will be called “Shipping With Amazon.” The service will reportedly pick up packages from businesses and deliver the packages to the businesses’ customers. Amazon is expected to roll out the new service in the next few weeks, starting in Los Angeles. They will begin by offering their delivery services to third party merchants who sell their goods on the Amazon site before they ultimately branch out to other businesses. This new business venture of Amazons will go by the Amazon business motto. “Undercut the competition.” The competition in this case just happens to be UPS and FedEx. The stock prices of both companies took a dip this morning when word spread about Amazons new delivery service set to launch.