Amazon is reportedly set to launch a competitor to FedEx and UPS. The service, named ‘Shipping with Amazon’ or, ‘SWA’, would challenge UPS, FedEx, DHL and other players on the delivery field, according to a recent report in the Wall Street Journal.
Here’s how the service would work: Couriers would pick up products from businesses that sell goods through the internet retailer and deliver that merchandise to Amazon warehouses. Right now, those goods are delivered to the warehouses by UPS, FedEx and other companies.
The service is reportedly set to begin in Los Angeles in the coming weeks but could expand “almost immediately”, according to the report.
The expansion would offer the services to other businesses, and undercut rivals by offering lower rates. In a statement to Retail Dive, Amazon said, “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.”
Amazon will still rely on its current network of couriers, like UPS, FedEx and the Postal Service, to get orders from its warehouses to customers.