Amazon package-delivery service to compete with FedEx and UPS | Business Insider

Amazon is planning to debut a package-delivery service for businesses that’s designed to compete directly with FedEx and UPS, according to a new report.

The Wall Street Journal’s Laura Stevens reported Friday that the e-commerce giant would roll out the service, called Shipping with Amazon, or SWA, in Los Angeles over the next few weeks. The service is expected to then spread to other cities around the US during the year.

The company would send SWA drivers directly to retailers and warehouses to pick up parcels, cutting out other delivery services. Amazon would then take the packages directly to consumers in the 37 cities where it currently delivers, according to the report.

The plan is to start with registered third-party Amazon vendors to undercut the costs of the other delivery giants.

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Amazon package-delivery service to compete with FedEx and UPS – Business Insider.