A new report claims Amazon will take on FedEx and UPS with its own delivery business.
The news: The Wall Street Journal says Amazon will roll out a delivery service in Los Angeles in the coming weeks. Called Shipping With Amazon, it will initially handle transportation of packages from third-party sellers to their customers. It will reportedly roll out more widely later on, and eventually handle deliveries for other businesses, too.
A long time coming:Frankly, it was only a matter of time before the tech giant took over delivery of its goods. Last yearAmazon tested what was essentially a trial of this service, with the goal of getting more goods to customers inside two days.
Why it matters:This will put Amazon in direct competition with FedEx and UPS, who have handled deliveries for the company in the past. Plus, the Journal says Amazon plans to undercut its competitors on price. The incumbents may be in for a rough ride.