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.
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.
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.
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.