Amazon to suspend delivery service competing with UPS, FedEx

Amazon needs people and capacity to handle a surge in its own customers’ orders

Amazon.com Inc has put on hold a new delivery service that competes with UPS and FedEx, the Wall Street Journal reported on Tuesday, citing people familiar with the matter.

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

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The company said here in March it would hire 100,000 warehouse and delivery workers in the United States to deal with a surge in online orders.

Amazon told shippers the service, known as Amazon Shipping, will be paused starting in June, the report added.

TickerSecurityLastChangeChange %
AMZNAMAZON.COM INC.2,421.86-15.02-0.62%

The service was rolled out to deliver non-Amazon and Amazon marketplace packages.

UPS and FedEx shares rose 2% in extended trading on the news.

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