Amazon Launches Supply Chain Services as UPS and FedEx Face New Rival
Amazon is opening its logistics network to outside businesses, a move that pushes the company deeper into direct competition with UPS, FedEx and other shipping providers.
The company announced Amazon Supply Chain Services, which will let businesses use Amazon’s freight, distribution, fulfillment and parcel shipping operations to move, store and deliver goods. Amazon said early customers include Procter & Gamble, 3M, Lands’ End and American Eagle Outfitters.
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The move matters because Amazon is attempting to turn infrastructure built for its own retail empire into a broader business service. That mirrors the company’s earlier strategy with Amazon Web Services, where internal technology became a major outside revenue line.
Markets reacted quickly. UPS shares were down more than 10%, while FedEx shares were down more than 9% in current trading data.
For businesses, the launch could mean another large-scale option for shipping and fulfillment. For logistics rivals, it raises a new competitive threat.
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