Amazon suspends delivery service in competition with UPS and FedEx


The online retailer has told its customers that the service, Amazon Shipping, will be suspended from June, according to the Wall Street Journal, which was the first to report the change.

Amazon is suspending the service because it needs people and capacity to handle an increase in orders from its own customers, the Journal reported, citing sources.

“We regularly review a variety of factors across Amazon to make sure we are set up to best serve our customers,” an Amazon spokesperson told Reuters in an email confirming that the service has stopped.

Amazon Shipping is available in a handful of U.S. cities, including Los Angeles, and manages non-Amazon and Amazon market packages.

The company is experiencing an increase in demand in the United States, where most residents are subject to home stay orders to stop the spread of the new coronavirus that is sweeping the world.

Amazon could not send many packages to customers in one or two days, as it had promised before the epidemic.

The suspension of Amazon Shipping will allow the company to focus on its basic delivery operations, said Trevor Outman, founder of consulting firm Shipware.

Amazon said in In March, it would hire 100,000 warehouse and delivery workers in the United States to handle a surge in online orders.

UPS and FedEx stocks rose 2% in extensive news trading.

(Reporting by Ayanti Bera in Bengaluru, additional reporting by Lisa Baertlein in Los Angeles; Editing by Anil D’Silva and Jane Wardell)


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