Amazon Takes Aim at UPS and FedEx With Latest Business Move
Amazon is bundling freight, trucking and last-mile delivery as investors worry the move could sharpen competition with UPS and FedEx.
- On Monday, Amazon launched Amazon Supply Chain Services, allowing external businesses to store and ship goods through its vast logistics network spanning ocean, road, rail, and air.
- The move mimics Amazon Web Services, which evolved from an internal IT tool into the world's largest cloud provider, as the company monetizes its logistics infrastructure.
- Investors reacted immediately, sending shares of United Parcel Service and FedEx down more than 9 per cent each, while GXO Logistics shares declined nearly 13 per cent.
- Large enterprises including 3M, Procter & Gamble, and American Eagle Outfitters have already signed on to use the company's freight, distribution, fulfillment, and parcel shipping capabilities.
- Analysts called the move a "watershed moment" for North American freight, with Parth Talsania, CEO of Equisights Research, saying Amazon is converting "logistics from a cost burden into an infrastructure product.
17 Articles
17 Articles
Amazon Turns Logistics Into A New Business, Up Against UPS And FedEx
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Amazon to challenge UPS and FedEx with new logistics venture
Amazon.com said May 4 it would allow other businesses to store and ship goods ranging from raw materials to final products through its vast network, as the e-commerce giant moves to challenge a market long dominated by UPS and FedEx.
Amazon opens up logistics network in challenge to shippers
Amazon is deepening its push into logistics, in a massive challenge to incumbent parcel carriers. FedEx and UPS shares fell after Amazon announced it was allowing other businesses to use its extensive supply chain network to move and store goods. It’s “a shot across the bow to the entire transport market,” one analyst said; another called it a “watershed moment” for North American freight. Truckers, railroads, and warehouse operators could all t…
Roundup: Amazon logistics / Occidental CEO / Property rights
Expanding services: Amazon is expanding deeper into logistics, bundling its freight, trucking and last-mile delivery into a new offering called Amazon Supply Chain Services. The move opens its vast distribution network to outside companies, including major manufacturers already on board. Investors reacted swiftly, sending UPS and FedEx shares lower on concerns Amazon could become a more formidable competitor in global shipping. Read more from Bl…
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