Amazon Develops Plan to Compete with UPS and FedEx

Amazon may have revolutionized the world of e-commerce, but until very recently the tech giant has left its shipping and logistics needs up to industry veterans like FedEx and UPS. Sure, they’ve been teasing their drone delivery service Amazon Prime Air for years now, but this service is still very much in the R&D phase of development. Furthermore, it’s only suitable for delivering lightweight packages over relatively short distances. Now, however, it appears that Amazon is planning to develop its own full-scale shipping and logistics network that would not only ship its own products, but products from other retailers and consumers as well.

So far, Amazon has publicly downplayed the ambitions of the new plan, explaining that it’s designed to complement, rather than compete with companies like FedEx and UPS. According to a report first published in The Wall Street Journal, however, insider sources have suggested that Amazon does ultimately intend to compete directly with established shipping and logistics companies.

The report notes that Amazon has recently hired Uber’s former vice president Tim Collins as its new VP of global logistics. They’ve also recruited a number of former executives from UPS and FedEx, as well as hundreds of former UPS employees in recent years.  The company is even trialing last-minute delivery service in major cities such as Los Angeles and Chicago.

All of this evidence suggests that Amazon is indeed making long term plans to develop its own shipping and logistics service on par with the likes of UPS and FedEx. Reportedly, some Amazon execs have begun calling the plan “Consume the City.” With a name like that, it certainly sounds like Amazon is trying to do a whole lot more than just complement its shipping and logistics partners. And if there’s one thing Amazon knows how to do, it’s how to drive consumption on a massive scale. For now, we’ll just have to wait and see what Jeff Bezos and company have in mind for their budding shipping service.