Watch out, FedEx and UPS: Amazon’s decision to offer shipping services to any and all business customers is already impacting the longtime delivery giants.
Until recently, only Amazon and its partner companies had access to the company’s trucks, airplanes, and storage. But in May, the company announced that it was launching Amazon Supply Chain Services, which will allow any business, regardless of its affiliation with Amazon, to use its shipping and storage capabilities.
Jack McCrum, director of optimization and analytics at parcel shipping intelligence platform Reveel, told Supply Chain Dive last week that Amazon is clearly targeting UPS and FedEx with its new strategy.
“They’re aggressively just going after UPS and FedEx right now, just to carve out that market share, and they’re willing to negotiate on that revenue per piece,” he said.
Amazon has been offering rates that are competitive with, or lower than, the services offered by FedEx and UPS, according to Retail Dive, citing experts working in shipping contracts.
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