- Amazon to suspend its Amazon Shipping service from June.
- The online retailer wishes to focus on core delivery operations.
- Amazon jumps back into the trillion-dollar club.
According to the Wall Street Journal that first reported the news, Amazon has announced to its customers that its Amazon Shipping service will be suspended from June.
The online retailer further added that suspending Amazon Shipping will enable the company to optimize its workforce and capacity to cope up with a sharp increase in orders. According to Amazon’s spokesperson:
“We regularly look at a variety of factors across Amazon to make sure we’re set up in the right way to best serve our customers.”
Amazon Shipping Is Active In A Few Of The U.S Cities
Amazon Shipping is currently active in Los Angeles and a few of the other U.S cities. The service handles both Amazon and non-Amazon packages.
The U.S government is quickly expanding the lockdown that restricts people to their homes in an attempt to minimize the fast spread of the flu-like virus. The stay-at-home order has pushed consumers into online shopping for essential items that, as per Amazon, has fueled a sharp increase in orders.
Before the outbreak, Amazon had pledged to deliver packages within a day or two days at most. Amidst the unusual surge in orders and shortage of workers, however, the company is failing to deliver on its promise.
According to Trevor Outman of Shipware, Amazon’s move is likely to help the world’s largest online retailer to shift its focus to its core delivery operation.
In late March, Amazon had expressed plans of hiring 100,000 workers for delivery and warehouse operations in the U.S to efficiently handle the recent increase in online orders.
Amazon’s announcement pushed FedEx and UPS around 2% up in after-hours trading on Tuesday.
Amazon Jumps Back Into The Trillion-Dollar Club
Amazon has recovered from the year to date low of £1,355 per share in mid-March. At the time of writing, it is exchanging hands at £1,639 per share in the stock market that translates to an around 7% increase in 2020 so far.
The U.S tech giant had recorded a record-high of £1,754 per share in February. Its performance in 2019 was recorded fairly upbeat with an annual gain of just over 20%.
Amazon’s recent recovery in the stock market has pushed it back into the trillion-dollar club. The company currently boasts a market cap of $1.01 trillion (£820 billion).