Amazon is preparing to launch a delivery service that will directly compete with FedEx and UPS, reports the WSJ.
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.
The new service is expected to launch in Los Angeles in the coming weeks with third-party merchants that sell on Amazon.com. The company then plans to expand to more cities later in the year. Eventually, its envisioned that the service will be open to other businesses as well. Amazon plans to undercut FedEx and UPS on pricing but the exact rate structure is unclear.
Over the past few years, Amazon has expanded into ocean freight, leased up to 40 aircraft and established an air cargo hub, and built a network of drivers which can now deliver inside homes.
Amazon already delivers some of its own orders in at least 37 cities and with the new 'Shipping with Amazon' option the company plans to send drivers to pick up shipments and deliver the packages when it can.
“We’re always innovating and experimenting on behalf of customers and the businesses that sell and grow on Amazon to create faster lower-cost delivery choices,” a spokeswoman said in a statement.