Amazon is reportedly set to launch a new delivery service that will enable it compete with UPS and FedEx. The new service, according to The Wall Street Journal, is tagged “Shipping with Amazon.” The new service, which will first be launched in Los Angeles soon and later expanded to other locations, will begin delivering orders from business partners directly to customers.
It is not yet known how this will affect the existing relationship that exists between Amazon, UPS and FedEx—two major partners when it comes to shipping purchased goods to customers. The two companies are yet to respond to the report, neither has Amazon made any official statement to that effect.
WSJ reports that Amazon’s plan is to be able to deliver goods from third-party sellers on its platform to customers. The service will then be extended to include business not currently on Amazon’s site.
Amazon’s biggest challenge is not only maintaining its long-standing relationship with the two giants, but actually competing with the two of them. UPS and FedEx have both been in the business for years, and it would take massive investments to come even close let alone beating them to the game.
WSJ also reports that Amazon is so determined to succeed in its bid that it is prepared to lower price. Of course, one of the biggest tools for penetrating any market is offering the same service as your competitors at a much lower price, but this could come at a loss for Amazon. This could take years, but the report suggests that the ecommerce company is all set to give that a try.
Already, Amazon is one of the biggest online retailers known for attracting millions of shoppers to its website every month. With that announcement, the company is set to become the biggest grocers in the world—and is expected to rake in billions of dollars in revenue annually.
Whole Foods Market is renowned for offering the best organic and natural foods in the world—and merging its business with another world-known ecommerce giant only means more good news for consumers. Ranked 28th in the world, Whole Foods Market has carved a niche for itself in terms of supplying natural and organic foods to shoppers, and will now become a part of a major force in online retail business.
Under the new arrangement, Whole Foods Market according to Amazon, will continue to operate the Whole Foods Market brand and source from trusted vendors and partners around the world. The retail giant also announced that John Mackey will remain as CEO of Whole Foods Market, while its headquarters will remain in Austin, Texas.