Amazon takes on UPS, FedEx with new delivery service sending their shares in a nosedive
Amazon has launched a new shipping service, Amazon Supply Chain Services, offering logistics to external companies, which has disrupted the delivery industry. The announcement caused shares of FedEx and UPS to drop by 10%, along with declines in other freight and trucking firms. Major companies like Procter & Gamble, 3M, Lands’ End, and American Eagle Outfitters are already using the service.
- ▪Amazon Supply Chain Services is now available to businesses outside its e-commerce platform.
- ▪Shares of FedEx and UPS each fell by 10% following the announcement.
- ▪Procter & Gamble, 3M, Lands’ End, and American Eagle Outfitters are among the first companies to adopt Amazon's new logistics service.
- ▪Tech analyst Dan Ives described the move as a 'shot across the bow' at UPS and FedEx.
- ▪Morgan Stanley analyst Ravi Shanker called the launch a potential 'watershed moment' for North American freight transportation.
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Business Amazon takes on UPS, FedEx with new delivery service sending their shares in a nosedive By Lisa Fickenscher Published May 4, 2026, 4:42 p.m. ET Amazon revealed it will begin offering shipping services to companies whether or not they sell goods on its e-tailing site — a bombshell announcement that sent shares of FedEx and UPS tumbling. The new initiative, called Amazon Supply Chain Services, sent shock waves through the logistics industry, with shares of FedEx and UPS both plummeting by 10%. Shares of trucking companies and other freight movers also got slammed, with GXO Logistics down 13%. XPO Inc. and Old Dominion Freight Line were down 6% each.
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