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Amazon May Deliver Gut Punch To UPS, FedEx


Online retail giant Amazon is reportedly launching a delivery service for businesses that will compete directly with FedEx and UPS.

According to Wall Street Journal, citing people familiar with matter, the new service called "Shipping with Amazon," or SWA will pick up packages from businesses and ship them to consumers.

Amazon intends 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 report. Amazon plans to expand the service to more cities as soon as this year.

Although the program will initially deliver packages of the company's third-party sellers, Amazon looks forward to open the service to other businesses as well, WSJ says. Amazon is planning to undercut UPS and FedEx on pricing as well.

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