(AP) – Shares of FedEx and UPS are falling following a report that powerhouse Amazon is readying its own delivery service.
Rumors have swirled that Amazon.com Inc. was looking to bring some of its delivery services in house as the retailer looks to have more control. On Friday The Wall Street Journal, citing anonymous sources, said Amazon is planning a new service called “Shipping With Amazon” that will allow it to pick up packages from businesses and deliver them to consumers. The service is expected to start in Los Angeles and then expand.
Shares of United Parcel Service Inc. and FedEx both declined more than 4 percent before the market open. Amazon’s shares rose slightly.