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Amazon set to square up to UPS, FedEx and launch its own delivery service

Tyrone Stewart

AmazonAmazon is reportedly planning to debut its own package delivery service for businesses, in a move that will put it into direct competition with companies such as the United Parcel Service (UPS) and FedEx.

The service will be called Shipping with Amazon – or SWA – and is set to roll out over the next few weeks in Los Angeles, California, according to The Wall Street Journal, citing people familiar with the matter. It is expected that the service will be introduced to other cities around the US throughout this year.

The service would see Amazon drivers go directly to retailers and warehouses to pick out parcels, eliminating the need for third-party delivery services – like the aforementioned UPS and FedEx – thus lowering costs. Once the package has been picked up from the retailer or warehouse, the Amazon driver would then take the package directly to the consumer.

Amazon recently started delivering products from Whole Foods Market, which it completed the acquisition of in August 2017, to Prime members in locations around the US including Austin, Texas; Dallas, Texas; Cincinnati, Ohio; and Virginia Beach, Virginia.