Amazon shipping is making FedEx and UPS sweat

Amazon is the world’s biggest online retailer, with an army of merchandise warehouses, airplanes, trucks, drones and couriers to aid its shipping ambitions. The Seattle-based company has made use of existing shipping companies, including a delivery partnership with FedEx, but it has also been moving to overtake them according to The Seattle Times. The publications warns, “Amazon is coming for you, FedEx and UPS. Maybe not today or tomorrow. But soon.”

Amazon has been accused of trying to negate companies like FedEx and UPS in the past. Executives have stated that the fleets of trucks, warehouses, airplanes, and delivery drivers are “intended to supplement existing shipping providers when needed and improve service for Amazon shoppers.” But Amazon cannot deny that it has built its own shipping empire, and surely, before long, it won’t need FedEx’s help.

On February 9th, The Wall Street Journal reported that “Amazon plans for the first time to pick up packages from businesses and ship them to customers.” Meaning, it won’t be employing a middle man. This option is available only in Los Angeles for now, and only for companies that sell merchandise through Amazon’s website. But, as The Seattle Times points out, “this is the company’s first direct move into FedEx and UPS territory.”

FedEx and UPS have been denying this move for years. Two years ago, FedEx CEO Fred Smith told analysts that, “In all likelihood, the primary deliverers of e-commerce shipments for the foreseeable future will be UPS, the U.S. Postal Service and FedEx.”

Now it is clear Smith was wrong. The likelihood of Amazon ousting FedEx and UPS right away is low – the process will take years. But Amazon has only been building its shipping infrastructure since 2013, and it already has a formidable force behind it.

Source: seattletimes.com – Amazon’s delivery dream is a nightmare for FedEx and UPS
Published: February 11, 2018