Amazon suspending delivery service that competes with FedEx and UPS
Category: #retail  By Saipriya Iyer  Date: 2020-04-08
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Amazon suspending delivery service that competes with FedEx and UPS

Amazon Inc., the renowned e-commerce and technology giant, has reportedly announced its plans to suspend its delivery service that focuses on competing with FedEx and UPS across the United States.

The retail giant informed its customers that its service, named Amazon Shipping, would be paused effective June of this year. According to reliable reports, the company is suspending its service because it needs the resources and the capacity to manage the surge in orders from its own customers.

In an email that confirmed the halt of the service, an Amazon spokesperson stated that the company regularly assesses a variety of factors throughout its operations to ensure that it is well-prepared to cater to the demands of its customers.

Currently, Amazon Shipping service is available across a select number of cities in the U.S., including Los Angeles. The service handles both Amazon as well as non-Amazon marketplace packages.

Amazon is also grappling with the exponential rise in demand across the U.S. brought on by the coronavirus, wherein a majority of residents are complying with the stay-home orders to curb the spread of the virus.

The company has been unable to deliver a majority of packages to its customers within the one or two day deadline it had promised before the pandemic.

Shipware consultancy founder, Trevor Outman stated that the discontinuation of the Amazon Shipping service would allow the online retail company to reorient its focus at the core of its product delivery operations.

In March, when the pandemic had started to spread across the continental United States, Amazon has announced that it would be hiring more than 100,000 delivery as well as warehouse workers to effectively tackle the tremendous surge in online orders coming from customers throughout the nation.

Meanwhile, following the announcement of the suspension of Amazon Shipping, shares of both FedEx and UPS jumped up by 2% in extended stock market trading.

Source credit: https://www.reuters.com/article/us-amazon-com-delivery/amazon-to-suspend-delivery-service-competing-with-ups-fedex-idUSKBN21P3EB



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Saipriya Iyer

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Saipriya Iyer

Saipriya Iyer develops content for Market Size Forecasters, Algosonline, and myriad other platforms. A computer engineer by profession, she ventured into the field of writing for the love of playing with words. Having had a previous experience of 3 years under her bel...

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