Challenging UPS and FedEx, Amazon Opens Its Shipping Network to All Businesses (geekwire.com)
- Reference: 0183175962
- News link: https://slashdot.org/story/26/05/10/1953232/challenging-ups-and-fedex-amazon-opens-its-shipping-network-to-all-businesses
- Source link: https://www.geekwire.com/2026/amazon-turns-its-logistics-empire-into-a-new-business-taking-on-ups-and-fedex-in-freight-and-shipping/
The move sent shares of UPS and FedEx "tumbling" Monday [2]writes GeekWire . And though both stocks bounced back as the week went on, GeekWire sees this as the latest example of Amazon "turning its internal capabilities into products and services for sale..."
"Amazon had already surpassed both carriers to become the nation's largest parcel shipper by volume, according to [3]parcel-analytics firm ShipMatrix ."
> Initial customers include Procter & Gamble, which is using Amazon's freight network to transport raw materials; 3M, which is using it to move products to distribution centers; Lands' End, which is fulfilling orders across sales channels from Amazon's warehouses; and American Eagle Outfitters, which is using Amazon's parcel service for last-mile delivery. The service can fulfill orders placed through platforms that compete with Amazon's own marketplace, including Walmart, Shopify, TikTok, and others... Peter Larsen, vice president of Amazon Supply Chain Services, compared the launch to the origins of Amazon's cloud business...
>
> In addition to putting Amazon in competition with existing players in the logistics industry, the move also raises questions about data privacy. Amazon has faced accusations of using nonpublic seller data to compete against merchants on its marketplace, which it has denied. Larsen [4]told the Wall Street Journal that the company prohibits using supply chain customer data for its own marketplace decisions, noting that hundreds of thousands of Amazon sellers already trust the company to fulfill orders placed on rival platforms.
The article notes taht in his [5]annual shareholder letter Amazon's CEO "said the company is also exploring selling its custom AI chips and robotics to outside customers."
[1] https://www.aboutamazon.com/news/retail/amazon-supply-chain-services-for-business
[2] https://www.geekwire.com/2026/amazon-turns-its-logistics-empire-into-a-new-business-taking-on-ups-and-fedex-in-freight-and-shipping/
[3] https://www.freightwaves.com/news/amazon-overtakes-us-postal-service-as-largest-parcel-carrier
[4] https://www.wsj.com/logistics-report/amazon-built-a-massive-supply-chain-for-itself-now-its-for-hire-c7d128b0?st=JnmUbs&reflink=desktopwebshare_permalink
[5] https://www.geekwire.com/2026/not-on-a-hunch-andy-jassy-defends-amazons-200b-spending-spree/
Logical step (Score:2)
I wondered how long. it would take before they did this. Businesses are good to start with because tehy are used to shipping via a carrier, Amazon is just one more carrier to see how much they can save with them vs UPS/FedEX/USPS. Home is harder because the last miles is variable; so you can't set fixed pickup routes and handling pickups takes longer tahn delivering and also need sorting so adding it to the drop-offs would be a challenge. However, a partnership with USPS to handle last mile and Amazon sh
and NOW DSP will take on more load for not much mo (Score:2)
and NOW DSP will take on more load for not much more pay.
thank god (Score:3)
USPS, Fedex and UPS have been awful lately. Over the past year or so their service has been awful. I never called Fedex local office ever until this year. USPS i had to call the local office three times in the last year. I have never considered that before.
Re: thank god (Score:1)
The Republicans in Congress gutted USPS to push people into Jeff Bezosâ(TM)s outstretched greedy hands.
Makes sense (Score:2)
They already have the warehousing and delivery network. Also with rising shipping costs post-Covid, there probably is a lower cost market that Amazon can easily capture without much retooling.
Itâ(TM)s about the unions (Score:1)
UPS has one of the strongest unions in the country and the highest paid employees for a logistic company. Heck, theyâ(TM)re some of the highest paid blue-collar employees.
FedEx also has a great union.
Meanwhile, Amazon is a union busting, worker micromanaging company that pays their workers extremely poorly and has an incredibly high turnover rate.
So theyâ(TM)ll be able to beat the competition on pricing. But is it worth it?
Re: (Score:2)
they're some of the highest paid blue-collar employees.
Have you used the services of a mechanic or a plumber in the last 10 years? They charge me, per hour, as much as my attorney. And I'll bet they're not carrying half-a-million in college debt from Columbia Law.
Re: (Score:2)
"They charge me, per hour, as much as my attorney."
What a super relatable comment. But unsurprising.
"And I'll bet they're not carrying half-a-million in college debt from Columbia Law."
I'll bet your "attorney" isn't either. How can such a narcissist hire an attorney that hasn't paid off his school debt yet? Can't afford any more than plumber's pay?
It's because (Score:3)
They want FedEx and UPS gone, once they do then they can take over the whole supply chain. And the government will let them. They will undercut UPS and FedEx, and use anti competitive practices.
Just remember (Score:2)
Fedex, UPS, DHL, Ontrac employees barely gives a shit about your packages because they work directly for the company paid to deliver them. Amazon, like Uber Eats, Grub Hub, Door Dash all hire 3rd party as part of its gig economy model and doesnt give a shit about anything their contractors do.
Tumbling! (Score:2)
Fedex up 1 pt in afterhours trading, UPS holding even
Great (Score:3)
Can we please nationalize them now, so we have a post office again?
Re: (Score:2)
The government already has their own postal service and look what they did with it.
Re: (Score:3)
Well Republicans have spent the last 40 years divesting it away, sabotaging and underfunding it in an effort to show how incapable it is and turn public sentiment against it and yet it still has been able to maintain a high level of service.
Re: (Score:1)
Blame your auto-pay, your consumption of online ads vs junk mail, and your non-subscription to dead tree magazines.
Re: (Score:3)
Why blame any of that? Why not blame the real culprits? Or do you not like accountability?
[1]https://apwu.org/the-usps-fair... [apwu.org]
[1] https://apwu.org/the-usps-fairness-act/
Re: (Score:2)
What did they do with it?
Re: (Score:2)
We are going in the other direction,