Amazon is pushing deeper into logistics by offering its storage and shipping network to other businesses, aiming to use the company’s scale across all sales channels. The move targets the lucrative B2B shipping market and puts pressure on established freight and parcel leaders like UPS and FedEx, as Amazon tries to make logistics an infrastructure-like service.
U.S. transportation stocks tumbled Monday after Amazon expanded its logistics services, ramping up competition across parcel delivery, air freight, and trucking. FedEx and UPS among the biggest losers, as investors worried Amazon’s push could disrupt the traditional transportation ecosystem. The drop came while the sector was near record highs, leaving it exposed to a fast correction.
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Amazon has launched Amazon Supply Chain Services, extending its global logistics network beyond its own marketplace to any business. The move turns Amazon into a direct competitor to UPS and FedEx by offering shipping and supply-chain capabilities built on its scale, fulfillment experience, and transportation infrastructure—potentially reshaping how smaller firms handle delivery logistics.
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