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Reports: Amazon launching shipping service to compete with UPS, FedEx

Amazon is reportedly getting ready to launch a shipping service that would compete with FedEx, UPS, DHL and other shipping companies.

The new service, called “Shipping with Amazon” or SWA, will start in Los Angeles “in coming weeks,” delivering for sellers on Amazon’s marketplace, the Wall Street Journal reported Friday. The service would expand almost immediately, according to the report.

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The move could save Amazon more than $1 billion annually, Citigroup analysts estimated in 2016. Amazon already delivers some of its own orders in at least 37 U.S. cities. The company has been creating its own delivery network.

It also building an air cargo hub in at the Cincinnati/Northern Kentucky International Airport. About a year ago, the company announced it would build a hub to meet better demand for quick delivery. The $1.5 billion project could bring up to 2,700 jobs to the region.


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