Look Out, UPS: Amazon Building Own Delivery Net

As shipping costs rise, Amazon looks to cheapen it
By Kevin Spak,  Newser Staff
Posted Apr 25, 2014 1:45 PM CDT
Look Out, UPS: Amazon Building Own Delivery Net
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)

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. (More Amazon stories.)

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