Amazon says it is halting its delivery service for non-Amazon packages. The third-party shipping service known as Amazon Shipping competes directly with FedEx and UPS. The service involves Amazon picking up and delivering shipments for third-party companies that sell on its site but choose not to store products in any of Amazon’s fulfillment centers.
Amazon says it will halt the service in June 2020 after launching the program in 2018 in Los Angeles. According to the eCommerce giants, the program had since expanded to a “handful of cities,” including New York and Chicago.
The company says it arrived at this decision after a regular review on how to serve its customers better. This also comes on the heels of Amazon saying it is limiting the shipment of non-essential goods so as to make room for essential goods.
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This is definitely influenced by the huge surge in business for Amazon lately. Millions are being urged to stay at home to contain the spread of the coronavirus, resulting in an explosion of the number of online shoppers.
Last month, Amazon made plans to hire 100,000 new workers in order to keep up with the demand. It also warned its customers about extended delivery times due to the large volume of orders.
Amazon Shipping to continue in the UK
FedEx and UPS will be particularly happy with the news. Amazon Shipping’s growth had been threatening to steal more share from the market of the traditional package carriers. UPS shares gained 6% while FedEx jumped to 8% at the news.
Amazon Shipping is, however, still available in the UK, where the eCommerce giants have no plans at the moment of shutting down the service.
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