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Amazon reportedly launching delivery service for businesses; UPS and FedEx shares fall

By midian182 ยท 11 replies
Feb 9, 2018
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  1. It’s long been thought that Amazon would eventually launch its own delivery service to compete with the likes of UPS and FedEx. According to a new report in the Wall Street Journal, Jeff Bezos’ tech giant has moved another step closer with the impending launch of Shipping with Amazon, or SWA.

    According to people familiar with the matter, SWA will see Amazon picking up packages from various businesses and delivering them to customers. Sources say the service will launch in Los Angeles over the coming weeks with third-party merchants that sell goods on Amazon’s online store. It will eventually roll out to more businesses and other cities.

    Amazon already delivers some of its orders in a number of US cities. SWA will see drivers picking up shipments from warehouses and businesses and delivering the packages when it is able, according to WSJ sources. The move will reduce the reliance on other delivery services.

    Amazon has previously invested in several shipping companies, including ones in the UK and France. It also leases aircraft and ocean freight equipment to deliver its packages.

    The company spends a huge amount on shipping costs and wants to reduce this by using its own network. It will also make extra income from SWA by offering it to other businesses in the same way it did with Amazon Web Services.

    The news has seen UPS' stock decline around 6% in pre-market trading while FedEx's stock dropped by about 5%. A UPS spokesperson said it continues to support Amazon and other customers and it doesn’t comment on customers’ business strategies or decisions regarding using UPS services.

    Permalink to story.

    Last edited by a moderator: Feb 9, 2018
  2. Uncle Al

    Uncle Al TS Evangelist Posts: 5,292   +3,701

    Considering their past performance, I shutter to think what will develop with anything shipped through Amazon ....
  3. TheBigT42

    TheBigT42 TS Maniac Posts: 313   +194

    Do you really think UPS, Fedex, and the Postal service do a good job???
  4. TheBigT42

    TheBigT42 TS Maniac Posts: 313   +194

    Well it can't be worse than UPS, Fedex, or the Postal Office
  5. captaincranky

    captaincranky TechSpot Addict Posts: 14,821   +3,912

    Actually they do a damned fine job, all three of them. I suppose it just depends on where you live.

    My mailman has never missed a CD or DVD package I ordered through Amazon.

    UPS has a daily route which runs through my neighborhood, as does FedEx.

    UPS had to scale back their "3 tries", approach to deliveries, and install the same kiosks that Amazon is touting, as a "big favor to the public, where you can pick up your packages". They also contract to a local grocery store to drop off missed contact with customer packages. It's only 4 blocks away from my house.

    As far it goes, Amazon has a nasty habit of sometimes treating its non Prime customers like sh!t. They'll sit on an item in the warehouse for days, when they know you're close enough to get one or two day delivery.

    So yeah, the bigger and pushier Amazon becomes, the less I want any of my money touching their hand.
    cliffordcooley and drjekelmrhyde like this.
  6. wiyosaya

    wiyosaya TS Evangelist Posts: 3,867   +2,201

    Personally, I prefer Fedex, the Postal Service, in that order, then as a last resort UPS.
  7. wiyosaya

    wiyosaya TS Evangelist Posts: 3,867   +2,201

    Sometimes? If that is the case, then you are getting great service - especially if it is free shipping. ;)

    Every time I order from crApazon with free shipping, they do their best to ship it so that it gets to me at the very end of their arrival window. I am a former "prime" member, so I figure that they are trying extortion to get me to rejoin prime. I have gotten to the point where I will do my best to find what I want elsewhere, then, and only then, will I order from them if I cannot find it elsewhere. Sometimes, I find better prices elsewhere and free two-day shipping especially from placed like B&H.

    It looks like crApazon will not be making this a public shipping service. Even if they did, I would not use it.

    The fact that they are starting their own shipping service makes me wonder whether all is well in bezosland. They are obviously trying to cut costs. Things like this are sometimes indicators that things are not as well as they might like you to think.
    captaincranky likes this.
  8. drjekelmrhyde

    drjekelmrhyde TS Evangelist Posts: 322   +113

    UPS, FedEX(Orange), and the USPS, deliver my stuff like clockwork. Fedex(Home and Green/ground) and Amazon are the farking worst. And guess what those to of the worst use contractors, who don't give 1 shiat.
    You're lucky if your area gets contractors from those two that actually give a fark.
  9. Kibaruk

    Kibaruk TechSpot Paladin Posts: 3,763   +1,159

    As a Prime member, I do have issues when Amazon delivers through Amazon, in my area at least I'm certainly not impressed with them.
    wiyosaya likes this.
  10. Amazon wouldn't much have a leg to stand on, if not for their tax payer subsidies and cooperation with the CIA.
  11. cliffordcooley

    cliffordcooley TS Guardian Fighter Posts: 11,286   +4,941

    Yes I do. It probably changes from region to region though. I however have not had any issues with those shipping couriers.
    wiyosaya, JamesSWD and mailpup like this.
  12. JamesSWD

    JamesSWD TS Maniac Posts: 331   +182

    Who wants to bet SWA will use Uber for deliveries to cut costs? LOL
    wiyosaya likes this.

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