Amazon.com Inc. will launch a delivery service that they hope will compete with United Parcel Service Inc. and FedEx Corp.
The new service called “Shipping with Amazon” or SWA will be launched for business or initially third-party sellers on the Amazon platform.
By being able to deliver their own products and third-party business, Amazon is set to lower the price and simplify the process for themselves.
Amazon has been slowly treading on the delivery service. The e-commerce giant has expanded into ocean freight and leasing cargo planes. It’s not certain when Amazon will go toe-to-toe with the likes of UPS and FedEx since these companies spend billions each year just upgrading their current networks.
Amazon has tested a pilot already in London and is now set to roll it out in Los Angeles within the next few weeks. The WSJ reports that Amazon plans to then “expand the service to more cities as soon as this year.”
The company already delivers in 37 cities but still depends on the U.S. Postal service for gaps in their service.
As independent analyst Ben Thompson puts it, Amazon’s ultimate goal “is to take a cut of all economic activity.”
There’s no guarantee that SWA will be a success for Amazon, but the company plans to undercut the price that UPS and FedEx charge to beat the competition.
via Daily Prompt: Simplify