• / Free eNewsletters & Magazine
  • / My Account
Home>UPS, FedEx stocks fall after report of Amazon testing new delivery service

UPS, FedEx stocks fall after report of Amazon testing new delivery service

UPS, FedEx stocks fall after report of Amazon testing new delivery service

10/05/2017

Shares of United Parcel Service Inc. (UPS) dropped 2.3% and of FedEx Corp. (FDX) shed 2.0% in premarket trade Thursday, after Bloomberg reported that Amazon.com Inc. (AMZN) was testing a new delivery service. The report, which cited people familiar with the plan, said Amazon is looking to make more products available for free two-day delivery and to relieve overcrowding in its warehouses. The service, a project Amazon is calling Seller Flex, has begun on a trial basis in the West Coast and is expected to have a broader rollout in 2018, the report said. As part of the service, Amazon will oversee pickup of packages from warehouses of third-party merchants and delivery to customers, the report said, which is currently handled by UPS and FedEx. While those couriers will still be used, Amazon will decide how a package is sent rather than leave that to the merchant, the report said. Amazon's stock gained 0.5% in premarket trade. Year to date through Wednesday, shares of UPS has gained 3.8% and FedEx has run up 19%, while the Dow Jones Transportation Average has tacked on 9.7% and the Dow Jones Industrial Average has advanced 14.7%.

-Tomi Kilgore; 415-439-6400; AskNewswires@dowjones.com

 

(END) Dow Jones Newswires

10-05-17 0832ET

Copyright (c) 2017 Dow Jones & Company, Inc.

1

©2017 Morningstar Advisor. All right reserved.