Battle of The Companies: Amazon Ready to Take on FedEx, UPS


    Everybody is familiar with the online company Amazon. Where people look to purchase cheaper items, similar to EBay. Well the latest with Amazon that Wall Street Pit acclaims and what people are wondering is if Amazon is preparing to take on its own deliveries and go neck-and-neck with its associates, FedEx Corporation and United Parcel Service (UPS).

    Bloomberg reporter Devin Leonard sure believes this is possible. There claims to be determined projects of the online retailer, and future plans could include delivery services, which is pretty exciting news for Amazon.

    A little background info on these services. FedEx and UPS deliver goods from online retailers and their best-acclaimed client is Amazon. Recognition to the online retailer’s quickly escalating corporations, it appears that the company is moving a step ahead by taking over its delivery tasks. Talk about being independent and taking ownership.

    With the talks of Amazon in the shipping division, carriers didn’t just misplace a major client; they achieved a very dominant competitor. Amazon is claiming to drivers to its Flex package delivery service. Growing numbers of white Amazon vans in cities across the US, have been spotted forcing the company to confirm if it is undeniably developing on replacing accessible delivery services.

    That said- Amazon reportedly leased more jets to make deliveries. The company distinguished however, that these steps are only meant to heighten delivery in the short-term. The move could turn into a separate delivery arrangement, which may harm traditional carriers.

    Furthermore, this talk of handling deliveries separately is influencing other companies. The e-commerce giant is currently taking over its own delivery functions in the United Kingdom, persisting that other companies do the same. For example the Royal Mail. Apparently it no longer has the capacity to handle all its packages because of the quantity of orders.

    Amazon is likely to deliver 7 billion goods in 2016, which is a great statistic. The volume of orders is overpowering customary carriers, especially during the climax season. The online retailer does not want to rely on traditional carriers alone to handle the deliveries.

    Amazon does well for itself, so I don’t see why this utilization can’t happen. The Motley Fool claims that CEO of Amazon, Jeff Bezos had 30 million recent customers in 2014 to carry its entire active user foundation to 244 million.

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    Zac Berry is presently a full time editor at Market Morning. He covers the M&As and follows live market commentary. Before joining Markets Morning, Zac Berry worked with a start-up, where he worked in the capacity of a Team Leader tracking company events and results. Born in the U.A.E, he spent most of his growing up years in Dubai. Currently, he resides in U.S. and is pursuing his charter in Accountancy.