Amazon to Launch Delivery Service That Would Vie With FedEx, UPS

From The Wall Street Journal: Inc.  is preparing to launch a delivery service for businesses, positioning it to directly compete with United Parcel Service Inc. and FedEx Corp.

Dubbed “Shipping with Amazon,” or SWA, the new service will entail the tech giant picking up packages from businesses and shipping them to consumers, according to people familiar with the matter.

Amazon expects to roll out the new delivery service in Los Angeles in coming weeks with third-party merchants that sell goods via its website, according to the people. Amazon then aims to expand the service to more cities as soon as this year, some of the people say.

While the program is being piloted with the company’s third-party sellers, it is envisioned to eventually be opened to other businesses too, according to some of the people. Amazon is planning to undercut UPS and FedEx on pricing, although the exact rate structure is still unclear, these people said.

. . . .

It is the latest move by Amazon to create its own freight and parcel delivery network. In the last couple of years, Amazon has expanded into ocean freight, built a network of its own drivers who can now deliver inside homes and leased up to 40 aircraft while establishing an air cargo hub.

Amazon already delivers some of its own orders in at least 37 U.S. cities. With the new “Shipping with Amazon” option, Amazon plans to send drivers to pick up shipments from warehouses and businesses itself and deliver the packages when it is able, the people said. For shipments outside Amazon’s delivery reach, the U.S. Postal Service and other carriers will take care of the so-called last mile to customers’ doorsteps.

. . . .

Amazon started building out its logistics network in earnest after it missed deliveries during the all-important holiday season in December 2013, according to people familiar with Amazon’s thinking. As more shoppers bought products online, Amazon executives concluded that the rate of parcel growth was too large for existing carriers to handle. Amazon also wanted to offer two-day deliveries, seven days a week.

Link to the rest at The Wall Street Journal

13 thoughts on “Amazon to Launch Delivery Service That Would Vie With FedEx, UPS”

  1. Was it FedEx or UPS that failed to deliver all Amazon packages by Christmas some years ago? Bezos has not forgotten nor forgiven.

  2. I get deliveries several times per week (I have chronic illnesses and get most things, even groceries, delivered). Amazon’s own delivery folks screw up almost never. UPS and FedEx often has stuff crushed/damaged or don’t even bother to knock to let me know they’ve dropped something off. USPS is slow. Lasership is not bad, except for that habit of delivering it to the wrong address. Ahem.

    Also, Amazon delivers all times–am and pm. FedEx and UPS tend to deliver after 3pm (I assume because they deliver to businesses before private residences).

    Yeah, let Bezos get in on this. As long as they keep doing the good job they do now, I’m okay with it. More than okay. Competition may make UPS/USPS/FedEx/etc more careful with my stuff in order to keep business.

  3. Plain white vans have been delivering Amazon stuff lately. The vans are identical, but have no markings or logo. I talked to one of the guys, and he said he was an Amazon employee, not a contract driver. Also said they have a fleet of those vans.

  4. Last item I got from Amazon I could track in almost real time on it’s way to my house. Very cool.

    This week I tried to get a package from Miami to Tampa by the USPS. It took 4 days. It took a full day to get it from downtown Tampa to my suburban PO and then to me by the next day, a day after the target delivery date. I want Zon to ship everything!

  5. This has been long predicted, and I’m glad it’s finally happening. I hope the Amazon guys will come and ring my doorbell/knock instead of leaving a package and taking off. Which has led to stuff on my porch getting stolen more than once. I tend to think this will be much better for Amazon customers and if UPS and FedEx and USPS want to get back in the game, then they better figure out how to compete and to stop messing things up as badly as they have been (in my neighborhood).

    • If I’m home and know something is coming that’s large or pricey, I put up a big sheet of paper with “Amazon, please KNOCK,” or “UPS, please knock.” It works maybe 8 out of 10 times; the others I guess just ignore big old pages with sharpie writing… :-/

      We put a flowery hedge in front of the door: not one stolen package in 20 years in a high-crime city area. The hedge hides the boxes nicely. A porch is trickier, but there’s likely a creative solution. (I know I remember seeing someone create a drop-in porch box that stuff can drop in (boxes), but only the owner can unlock and take it out.And then there’s the question if Amazon Lockers are available in your area (it is in mine, but they are ALWAYS FULL–at least the one closest to me is).

    • I get deliveries from the unmarked Amazon vans. They guy leaves the package, takes a picture of the package on the porch, rings the doorbell, and leaves.

      • The other good thing with Amazon is that if it were stolen, they send you a replacement. Happened once, couple years back. Sneakers were due, didn’t come, thought USPS tracking said they were delivered. I thought maybe they took it to the wrong house. Zon c/s asked I wait 24 hours. Still not here: they sent me a pair overnight. Then, the delivery of pair one arrived (late) and they told me to keep the pair for free. Two pairs of $69 sneaks for the price of one cause I had to be troubled by delivery screw-up by USPS. THat’s customer service. 😀

  6. Incoming: More jars of urine on the side of the road.

    Maybe this new delivery company can make that their logo?

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