Amazon to end third-party delivery service in competition with UPS, FedEx

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Amazon.com Inc. will end a non-Amazon package delivery service, people familiar with the topic say, as it reassesses the nascent offering that directly competes with FedEx Corp.
FDX,
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and United Parcel Service Inc.
UPS,
-2.89%

Amazon
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+ 0.70%

told senders that the service, called Amazon Shipping, will be suspended from June. It was only available in a handful of American cities.

As part of the program, Amazon drivers picked up packages from companies and delivered them to consumers, rather than shipping orders from Amazon warehouses.
“We understand that this is a change for your business, and we did not take this decision lightly,” Amazon said in a note to senders reviewed by the Wall Street Journal. “We will be working with you over the next few weeks to minimize the disruption to your business.”

Amazon is suspending the service because it needs its employees and its capacity to cope with a large increase in orders from its own customers, according to a person familiar with the matter. The company has said it wants to hire 100,000 warehouse workers and is focused on shipping essential items during the coronavirus outbreak.
An extended version of this report appears on WSJ.com.

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