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Amazon discontinues third-party delivery service competing with UPS, FedEx



Amazon.com Inc. will discontinue a delivery service for non-Amazon packages, according to those familiar with the matter, as the resulting offer, which is directly linked to FedEx Corp. competes, is reassessed.
FDX,
-2.57%

and United Parcel Service Inc.
UPS,
-2.89%

Amazon
AMZN,
+ 0.70%

informed shippers that the service, known as Amazon Shipping, will be suspended from June. It was only available in a handful of US cities.

As part of the program, Amazon drivers would pick up packages from companies and deliver them to consumers instead of shipping orders from Amazon warehouses.

“We understand that this is a change for your company, and we didn’t make this decision lightly,” Amazon said in a note to mailers verified by the Wall Street Journal. “We will work with you over the next few weeks so that your business is disrupted as little as possible.”

Amazon discontinues the service because it needs its people and capacity to handle an increase in orders from its own customers, a person familiar with the matter. The company has announced plans to hire 100,000 warehouse workers and is focusing on shipping key items during the Corona virus outbreak.

An expanded version of this report is available at WSJ.com.


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