Amazon shares news: ‘Shipping with Amazon’ to disrupt delivery sector

Amazon shares ended lower in the US Friday as reports emerged the tech giant is planning a shipping expansion, 'Shipping with Amazon'.

Amazon shares news: ‘Shipping with Amazon’ to disrupt delivery sector

Amazon shares ended lower in the US on Friday, amid news the global tech giant is planning to launch a new business shipping venture called ‘Shipping with Amazon’. This latest business expansion would see Amazon build on its existing shipping capabilities to eventually provide services for businesses not already regularly working with its website.

Amazon shares closed 0.81% lower at $1,339.60. However, in after-hours trading activity, the Amazon stock is currently in the green.

Amazon’s shipping plans

Amazon’s latest shipping plans – first reported by the Wall street Journal – would give businesses an additional shipping option to deliver their packages to consumers.

Both FedEx and UPS shares slipped on the news, Friday.

Amazon already delivers direct to customers across much of the US, with its Amazon fulfilment service. Now, however, the online retail behemoth is working to remove third-party shipping firms out of the equation and also potentially snap up some of their business, to boot.

Amazon has reportedly begun testing its new Shipping with Amazon service in LA, by offering shipping options for business who sell through its website but haven’t opted in to its fulfilment package.

According to CNBC, however, UPS is continuing to work with Amazon.

"UPS continues to support Amazon and many other customers and we don't make comments about their business strategies or decisions regarding their utilization of UPS services," UPS said in an emailed statement to the news outlet.

Amazon move follows Whole Foods delivery news

As Amazon begins to expand its shipping capabilities, the tech business also announced last week it would begin delivering some Whole Foods goods through the Amazon Prime Now service.

Prime customers seeking delivery in Austin, Cincinnati, Dallas and Virginia Beach can now order Whole Foods goods online and have them delivered within just two-hours, through Amazon Prime Now.

“We're happy to bring our customers the convenience of free two-hour delivery through Prime Now and access to thousands of natural and organic groceries and locally sourced favourites,” said John Mackey, Whole Foods Market co-founder and CEO.

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