Amazon is reportedly kickstarting "Shipping With Amazon," or SWA, a delivery service for other businesses that will take on industry leaders UPS and FedEx.
SWA will launch in Los Angeles within the next few weeks, initially servicing merchants that do business through Amazon.com, Wall Street Journal sources said on Friday. Some of the people indicated that it could expand to more cities by the end of 2018.
Amazon will allegedly try to undercut UPS and FedEx on pricing, which could shake up the parcel industry if the company can scale infrastructure. The company has been gradually moving into self-run deliveries by hiring drivers, setting up air cargo, and delving into ocean freight. It has even been toying with in-home deliveries for people willing to pay for a special lock and camera setup.
Apple currently relies on both UPS and FedEx for U.S. deliveries, and might be tempted to add Amazon to the mix if it will lower overall costs. At the same time, that would funnel money towards a chief competitor.
The two companies are increasingly stepping into each other's territory. Most recently Apple has entered the smartspeaker space with the HomePod, and laid the groundwork for a 2019 TV slate that could challenge Amazon Prime Video.