Day: September 27, 2016

Amazon’s newest ambition: competing directly with UPS and FedEx

Tackling the delivery business, Amazon executives publicly say, is a logical way to add delivery capacity — particularly during the peak Christmas season, according to a new Wall Street Journal this afternoon.

Amazon logo“But interviews with nearly two dozen current and former Amazon managers and business partners indicate the retailer has grander ambitions than it has publicly acknowledged,” the newspaper says.

Amazon’s goal, these people say, is to one day haul and deliver packages for itself as well as other retailers and consumers — potentially upending the traditional relationship between seller and sender.

The shipper’s grander ambitions has enormous implications for Louisville, where UPS is the city’s single-biggest employer, with 22,000 workers. Amazon itself also is a major area employer, with 6,000 workers at distribution centers in Jeffersonville and Shepherdsville.

Wall Street rallied around both companies after the WSJ story was posted. Amazon closed at $816.11, up $16.95 a share, or 2%. UPS closed at $110.01, up $1.17, or 1%.