Amazon is about ready to take on Fed Ex and UPS.
The retail giant is reportedly developing a “Shipping With Amazon” delivery service that would compete against FedEx and UPS, according to a report in The Wall Street Journal.
The time frame for roll out is soon, too: Amazon is said to be readying the service for its first launch in LA in the “coming weeks,” starting, not surprisingly, with companies that sell stuff via its website. After its initial launch in LA, Amazon will look to expand it out to other cities, possibly as soon as later this year, the WSJ says.
Amazon currently records big losses on shipping. Last year, the company spent as much as $20 billion ensuring its products made it to customers. By taking some of that in-house, Amazon could conceivably better control those costs. Beyond that, though, there’s a lot of money to be made in the shipping industry.
Neither UPS nor FedEx seems to be especially taken aback by this, based on their non-comment comments in the WSJ report. For now, at least, Amazon will still definitely have to rely on its shipping partners to make things work.