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Amazon tests new delivery service, eyes off FedEx & UPS

Amazon could disrupt the entire delivery service market with its own service
By: Anthony Garreffa | Technology in Vehicles News | Posted: 1 week, 5 days ago

Amazon wants to cut down on its reliance of third-party companies delivering its goods once they leave their respective distribution centers, with Bloomberg reporting the everything giant is testing its own delivery service.

 

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This move would allow Amazon to reduce overcrowding its factory warehouses, as well as providing two-day Prime shipping on more of its products. Amazon is already delivering goods in India, but will be making its big splash in delivering goods in the US very soon with trials already kicking off near the West Coast. Bloomberg reports that Amazon's delivery services will be made available to other states soon.

 

Amazon's delivery service is reportedly called Seller Flex, which is... well... really odd. Amazon Delivery or Amazon To You (or something like that). The Verge received a statement from FedEx, one of two companies that would be directly impacted by Amazon's new Seller Flex program.

 

Patrick Fitzgerald, FedEx's Senior VP of Integrated Marketing and Communications said: "We don't comment on speculative news stories but there continues to be reporting related to our networks and the transportation industry that demonstrates a clear misunderstanding of the scale, infrastructure, and complexity involved in running a global transportation network. FedEx and other transportation providers are innovating as it relates to new services for e-commerce residential deliveries, but that is only one piece of the capabilities that we provide. Demand for our global portfolio continues to grow".

NEWS SOURCES:Theverge.com

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