Look Out, UPS: Amazon Building Own Delivery Net
As shipping costs rise, Amazon looks to cheapen it
By Kevin Spak, Newser User
Posted Apr 25, 2014 1:45 PM CDT
In this file photo, an Amazon.com team member loads boxes of fulfilled orders into a truck in a Fernley, Nev., warehouse.   (AP Photo/Scott Sady)

(Newser) – Amazon wants to deliver its own packages to your door—and not just with drones. The online retailing behemoth is already testing its own "last mile" delivery network, taking packages straight to customers in San Francisco, LA, and New York, the Wall Street Journal reports. The move would help the company cut down on shipping costs—which rose 31% in the first quarter, according to yesterday's earnings report. It should also help the company control its own destiny in the event of delays like those that hit this Christmas.

Amazon explained its thinking in a recent job posting. "Amazon is growing at a faster speed than UPS and FedEx," the posting read. "At this rate Amazon cannot continue to rely solely on" such outside providers. The company already has implemented its own system in the UK, where its needs exceeded available commercial shipping capacity. It also has a same-day grocery delivery business in a few West Coast markets. But so far the US service is a work in progress; the Journal says several deliveries to its San Francisco office have arrived late, and online forums are rife with similar tales.

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Showing 3 of 19 comments
JERZJOE
Apr 27, 2014 11:47 AM CDT
hey i see it now bike delivery courier jobs open soon. cause Bikes are an inexpensive, fast, and efficient way to deliver good!! there ya go!!
dan6807
Apr 26, 2014 10:57 PM CDT
My only take on this is part time help with no benefits to cut costs. Amazon is one of the worst offenders for paying minimum wage and dropping expensive workers.
JoeCollege
Apr 26, 2014 12:44 PM CDT
I have no complaints about Amazon - excellent deals, excellent service. However, I can see today's Amazon being tomorrow's Walmart - in fact crushing Walmart and every other brick and mortar retailer out there. I don't think this helps America's problem with income distribution. Small retailers are in danger of extinction.