Coming Soon: Amazon's Own Delivery Service
Continuing its push for faster and more efficient delivery, Amazon will soon launch “Shipping with Amazon,” a delivery service that will work with Amazon's third-party merchants to pick up goods from their warehouses and businesses and deliver them to the doors of its consumers.
The service, which Amazon has been working on since 2016, will be introduced in the Los Angeles market first, but could enter markets across the U.S. within the year, the Wall Street Journal reports.
SWA will compete directly with United Parcel Service and FedEx by offering cheaper prices because Amazon will be delivering the goods itself rather than using a third party. This could save the company an estimated $1.1B annually. In the case of a delivery that is out of reach, Amazon will use the U. S. Postal Service, among other carriers.
This is not the e-commerce giant’s first foray into logistics. In January, Amazon invested in ocean freight and began acting as a global freight forwarder in order to facilitate a faster delivery of goods from Chinese merchants to its U.S. warehouses. It also took to the air in February with a plan to create an air cargo hub for its fleet of planes. The new hub will be at Cincinnati/Northern Kentucky Airport and is expected to create an estimated 2,000 jobs, according to the WSJ.