Amazon’s New Logistics Service Pressures UPS and FedEx Shares

Mon, 04 May 2026 20:10:00 +0200

Amazon’s launch of Amazon Supply Chain Services weighed on shares of major shipping and logistics companies, including UPS and FedEx, as investors reacted to the prospect of stronger competition in freight, fulfillment, and parcel delivery. The new business is designed to let companies outside Amazon’s marketplace use Amazon’s logistics network for services such as storage, shipping, and fulfillment. Market participants saw the move as an expansion of Amazon’s reach from e-commerce into a broader supply-chain platform.

The stock reaction was immediate, with transportation and delivery names falling as the market priced in a more competitive landscape. The announcement suggested Amazon is not only supporting third-party sellers on its platform, but also trying to become a direct logistics provider for a wider set of businesses. That raises concerns for incumbents whose core businesses depend on package delivery, shipping, and warehousing.

The article frames the development as part of