Amazon to Launch New Delivery Service
Seeking Disruption of Shipping Industry
Amazon is launching a new delivery service for businesses called Shipping with Amazon (SWA), The Wall Street Journal has reported. That will put the internet retailing giant in competition with shipping companies like UPS and FedEx.
SWA will roll out in Los Angeles soon. The service is directed at third-party vendors that sell goods on the Amazon website and is expected to then spread to 37 other cities around the United States.
Amazon’s plan is to undercut existing delivery services on price, with SWA drivers going directly to retailers and warehouses to pick up parcels.
Amazon entered the logistics and delivery realm as early as 2015, as part of a strategy to take greater control of its shipments. In 2015, the company began leasing planes for Prime Air in the US and bought truck trailers to enhance its shipping capacity for the holidays.
In 2016, Amazon obtained approval from the Federal Maritime Commission to act as an Ocean Transportation Intermediary. A year ago, Amazon announced it was coordinating shipments from Chinese merchants to warehouses in the US. Amazon also functions as a freight forwarder and logistics provider, reserving space on vessels and handling trucking from ports to warehouses.
Amazon reportedly has coordinated the shipment of 150 containers from China since October 2017.
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